"FINANCIALLY SUFFOCATED". Mexican manufacturers use their assets to pay wages

According to CICEG executive president, Alejandro Gómez Tamez, to various local media, many footwear manufacturers in the state of Guanajuato "are penniless and financially drowned, having to appeal to their personal assets to pay salaries to their workers".

The dramatic situation is a consequence of the health crisis caused by COVID-19, which has determined social isolation, closing of commerce in general and, therefore, the almost total paralysis of shoe factories.

Sources from the Guanajuato Footwear Chamber -CICEG- report that its state is the one with the largest production of footwear in Mexico. There are approximately 3,500 establishments, mostly MSMEs, employing 27,000 workers. They also added that layoffs are taking place and as time goes by, the risk of higher job losses increases.

From the association says there has been no communication from the federal government , or help to deal with the serious moment of the sector is going through. The only hope is the state government will immediately launch a series of promised loans for the most urgent cases.

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