On the evening of Wednesday, December 11, Alfonso Rojo, president of the PIMEEFoffered a speech full of reflections and warnings during the PIMEEF 2024 Awards gala. In his speech, Rojo addressed the main challenges facing small and medium-sized enterprises (SMEs) in the Pitiusas, from the housing crisis to rising costs and outdated labor regulations, not to mention recent measures against intrusiveness and business solidarity in times of crisis.
A season of mixed results for local companies
Rojo opened his speech by pointing out that, although the tourist season began strongly, the results were not uniformly positive for all sectors. “There were several voices that announced during the summer that it was not being a record season,” he said, explaining that the good start was followed by a “slight softening” in high season that generated uncertainty. Factors such as the increase in personnel costs and the expansion of workforces since the beginning of the season complicated profitability.“Impossible to complete staffing levels without putting more money on the table,” said Rojo, who highlighted the 18% increase in costs from 2019 due to taxes, contributions and excessive regulation, directly affecting productivity and growth of SMEs.
Criticism of regulations that are disconnected from local reality
One of the highlights of the speech was his criticism of the current labor regulations, which limit overtime in temporary contracts. According to Rojo, these laws push workers to seek additional income in the underground economy.
“With a law that does not allow more than 40 hours of overtime in a 6-month contract, it is not realistic,” he said. He asserted that these limitations hurt both employees and companies and called for an urgent review.“Are we getting down to serious work or are we continuing to push our people into the jaws of riffraff misnamed employers?” he questioned, addressing unions and legislators.
A slap on the wrist to the political class
Rojo also dedicated a segment of his speech to criticize the “political deadlock” that could lead to the prorogation of the regional budgets. “It sounds like a joke that because of their disagreements they are going to penalize their citizens and their companies,” he said, comparing political inaction with a hypothetical paralysis of investments in the private sector. “Imagine that Balearic companies freeze our improvement plans? It is unsustainable,” he said, emphasizing that the lack of political action increases the burden already borne by SMEs.
Housing: the great social challenge
Access to decent housing was one of the central themes of Rojo’s speech, who did not hesitate to describe the situation as “a scourge”. He explained that local companies face a double challenge: on the one hand, guaranteeing adequate working conditions for their employees; on the other, dealing with the effects of a real estate market marked by speculation and abuses. “We rent housing for our employees, we pay higher salaries, but the money slips through our fingers as long as there are unscrupulous people renting at abusive prices and mercenaries re-renting without the slightest modesty,” said Rojo, who also emphasized the need to prosecute these illegal practices. According to the president of PIMEEF, these actions not only harm workers, but also generate a breeding ground for the underground economy.
Acknowledgments and message of unity
Despite the critical tone, Rojo dedicated space to recognize positive efforts.He celebrated the start of the academic year at the School of Hospitality and highlighted the fact that the percentage of bankrupt SMEs in the Balearic Islands is significantly lower than the national average, a fact he attributed to the resilience of the local business fabric. The closing of his speech was marked by a personal recognition to JosĆ© Raya SĆ”nchez, from Punky Trance, for his work in emergency situations. “When he had a trailer under two meters of water in a devastated area, the first thing that came to his mind was: how can I use my company to help? How can I use my staff and knowledge for others?” he narrated emotionally. With these words, Rojo highlighted the spirit of solidarity that defines Pitiusan entrepreneurs. In closing, Rojo called for unity among businesses, unions and administrations to address the challenges facing local SMEs. “We can continue to cheat alone or take the bull by the horns,” he said, urging a real commitment to transform problems into concrete solutions.
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