Carlos Slim proposes to work three days a week and raise retirement to 75


Carlos Slim has the economic recipe for the new normality: working days of 11 hours, but three days a week, and raising the retirement age to 75. The Mexican magnate considers that the global blow of the covid-19 pandemic requires new and adventurous plans to fight unemployment and save companies from bankruptcy.

Magnate Carlos Slim gives his opinion on the Government's economic performance. Photo: Flickr
Magnate Carlos Slim gives his opinion on the Government's economic performance. Photo: Flickr

This "invisible virus has generated an unusual economic and social situation that will lead to a new normality, although many things will no longer be the same," he summarized this Wednesday during his virtual participation in a meeting of the Spanish Confederation of Directors and Executives (CEDE).

This is not the first time that the Mexican businessman, one of the 10 largest fortunes in the world according to Bloomberg, has launched this type of proposal. In 2015, long before the outbreak of the pandemic, but with the global economy still recovering from the financial crash of 2008 and the subsequent long recession, he presented in another business meeting his commitment to 33 hours of work per week divided into only three days, also opening the door to "anyone who wants to can have two jobs. He was also in favor of delaying the retirement age, "because retiring at 62 makes the system unsustainable," he said referring to the Spanish case.

With the context this time of the coronavirus health crisis that has collapsed global demand dragging the value chains of companies to the precipice, Slim has taken advantage this Wednesday to move one step further towards a story of prophetic dyes in the style of the gurus of the digital economy: "There is a civilizing change of industrial society to a new technological civilization that has very positive effects. In the same line, he advocated "simple structures" and "minimum hierarchical levels".

Slim owns the giant América Móvil, a business conglomerate in the world of telecommunications with a presence in some twenty countries and more than 270 million subscribers worldwide. And the giant has not exactly done badly during the new normality. Its profits at the end of the third quarter grew by more than 10% to 86.5 billion pesos. "After the enormous monetary and fiscal stimulus introduced throughout the world since the arrival of the pandemic, the third quarter saw a rebound in economic activity in most countries in our region of operation," explains the company in its report to the Mexican Stock Exchange (BMV).

While Slim's giant has already managed to overcome the crisis, only 20 of the more than 190 countries analyzed by the last study of the International Monetary Fund (IMF) will close the year in positive. All of them, moreover, are in Asia and Africa, accustomed to lax labor laws like those proclaimed by Slim at the world level. One Asian country stands out above all others: China, the largest factory in the world, where the first cases of coronavirus were detected, will be the only big economy that will grow this year.

The 10 business principles that made Carlos Slim the richest man in Mexico

1. "Competition makes you better. It always, always makes you better, even if the competitor beats you.

2. "We must impose our will on our 3. weaknesses."

3. "If you're in business, you need to understand the environment. You need to have a vision of the future and you need to know the past.

4. "When you live for the opinions of others, you are dead. I don't want to live thinking about how I will be remembered.

5. "Maintain austerity in good times to avoid layoffs in bad times".

6. "Education and employment are the remedies for poverty."

7. "Firm and patient optimism always pays off."

8. "I don't believe much in luck. I believe in circumstances. I believe in work."

9. "Every moment is good for those who know how to work and have the tools to do it.

10. "The best fence you can have is to create opportunities in Mexico, so that people don't leave.

CarlosSlim's little-known businesses outside of Mexico

The Mexican magnate has an appreciation for some companies that helped him build his empire, but this has not stopped him from diversifying into sectors ranging from car racing to bakery and confectionery.

Mexican businessman Carlos Slim Helú is known in Latin America not only for being the richest man in the region but also for his large investments in the telecommunications and commodity sectors.

But beyond these two areas with large investments, Slim has in Mexico a series of businesses that are little known beyond Aztec lands and include stationeries, cafes, restaurants, chocolates, the health sector, music, computer sales, clothing, and cigars, among others.

In the short term, it is not ruled out that some, such as its Sanborn's chain of stores, restaurants and coffee shops, may have an expansion in countries such as Brazil or Argentina, two economies that are currently among the priorities of the entrepreneur.

For those who live in Mexico, the name Sanborn is as common as talking about the weather. With 165 branches in the third quarter of 2017, nine fewer than in 2016, it could be said that this business is present throughout the national territory.

For Slim, the money is important, but also the affection he can develop for some of his businesses, and two of the most beloved are precisely Sanborn and the Sears stores, a brand that declared bankruptcy in the United States, but that the tycoon has kept alive in Mexico as one of the favorites of the upper middle class.

"Sanborn was the first company registered in the stock market that Slim bought, it had a huge social prestige," Luis Enrique Mercado, a journalist who met Slim in the early seventies when he was a broker at the Mexico Stock Exchange, told Infobae Mexico. Securities (BMV).

It was founded in 1903 in the center of Mexico City by Walter Sanborn, an American pharmacist, under the name of "Sanborn American Pharmacy."

After the Mexican Revolution of 1910, Sanborn rented and remodeled a historic building known as "La Casa de los Azulejos". He turned it into a luxurious restaurant, tea room, soda fountain, gift shop, pharmacy, and candy store. It became the meeting place of the high society of the time.

In 1946, after opening a series of branches in the capital, Frank Sanborn sold the chain to Walgreen Drug Company of Chicago, which took over until 1990. Despite the transaction, the coveted Casa de los Azulejos joined the portfolio of the company until 1978 when the heirs, who rented it to the owners of the Sanborns stores, sold it for the high cost of maintaining it.

Eleven years later, the Mexican entrepreneur appears on the scene, buying most of the company's shares and initiating the restoration of the historic building built in 1737 as a priority task.

The chain handles several own brands, such as the traditional chocolates that are also owned by the businessman, who at some point participated in the confectionery through Hershey's, in which he had a package of shares.

Sanborn became one of the three pillars of Grupo Carso, with sales exceeding 49,768 million pesos in 2017 (USD 2,603 million). The holding company has Sears brands in its portfolio; the iShop stores, a partnership with Apple; MixUp, dedicated to the sale of music and tickets for big shows, the luxury stores Saks Fifth Avenue and DAX stores, dedicated to the sale of perfumery and cosmetics.

"He has always been a visionary man since he was the auction floor operator at the BMV." In the early seventies, he bought a bankruptcy printing company called Galas, also a sand mine, he was always looking for diversifying, "Mercado recalled.

"He has done something very remarkable with brands that were already in the history of the United States such as Sanborns and Sears, where he has not been very successful is in Saks," he says.

Mercado adds that the tycoon was always clear that Latin America was a big market and that the future of his investments was in countries like Brazil or Argentina, which after his economic crises have given him the opportunity to apply the formula that has always worked for him. : buy cheap and sell expensive.

It has also been able to land investments that Mexican regulation has complicated, such as pay television.

"The Latin American market was very clear for many years, and by 2012 or 2013 it was saying that the GDP (Gross Domestic Product) per capita of the region was going up, that from USD 10,000 it would go to 14,000. for him, he had to go to Brazil and Argentina, and now after Mexico is where he is most present, "he said.

The little-known businessman's business does not end with clothes. One of the companies that he keeps close to his heart, like Sanborns, is Cigarrera La Tabacalera Mexicana (Cigatam), which he bought in 1981. He produces brands of cigars such as Marlboro, Delicados and Benson & Hedges. Although in 2007 it sold most of the company to Philip Morris it retains 20% of the stock package.

For the tycoon, this company is the model of its success, since, during the first 25 years after its purchase, it gained 1.5% on average of the market share every year.

The Mexican crisis of 1982, when the country was broken and nobody dared to invest, Slim took the opportunity to buy a whole series of companies at very cheap prices, no matter what area they belonged to.

Thus, it was made of important shareholder packages or of the total of companies like one called Hulera El Centenario; Bimex, the manufacturer of bicycles; the hotel chain Calinda, now known as Oscar Grupo Hotelero; the tire companies Euzkadi and General Tire, insurers ... The list is endless, everyone wanted to sell to the only man who ventured to buy in those years of instability.

In the mid-nineties, he bought El Globo, a chain of confectionery stores founded in 1884 by the Italian immigrant family Tenconi, then sold to the Mexican Bimbo.

In 2000 he ventured into the sale of office supplies through the US chain OfficeMax, where he bought a 7.5 percent share package.

A decade ago, through its Impulsora del Desarrollo y el Empleo en América Latina (IDEAL) and the Star Médica Group, he ventured into the business of building private hospitals.

One of these projects, located in the State of Mexico, adjacent to the Mexican capital, includes a shopping center.

The commercial plazas are another of the magnate's businesses. To the south of the Mexican capital, it has two that are of its property: Plaza Loreto and Plaza Cuicuilco. Both were old paper mills from the late nineteenth century that he rescued to become thriving businesses.

"He is also associated with the expansion of Santa Fe Shopping Center in Mexico City (one of the most expensive in Latin America), which is another place that was made with Slim's capital," Ignacio Martínez, coordinator, told Infobae. from the Foreign Trade Analysis Laboratory (Lacen), a Mexican think tank dedicated to business promotion.

Justo is Cuicuilco square which houses offices of its various companies, including those of Grupo Financiero Inbursa through which the bank of the same name operates. Due to its level of capitalization, Banco Inbursa is considered by the National Banking and Securities Commission as the seventh most important in the country.

Although he is fond of baseball, particularly the New York Yankees, in 2012 he became the new player of Mexican soccer with the purchase of 30% of the clubs Pachuca and León of the first division. Later, along with Pachuca, he bought the rising team Estudiantes Tecos.

Excited with the purchases in the Aztec soccer, also in 2012 he invested 2 million euros in the Spanish club Real Oviedo, becoming the majority shareholder.

However, it was not the first time that Grupo Carso invested in sports; Through the Telmex team, it sponsors Mexican pilots of different categories. After 23 years of absence, he managed to take Formula 1 back to Mexico.

The sky has not escaped from the tentacles of the entrepreneur. In 2007, he invested in Volaris, a low-cost Mexican airline, but in 2010 he sold his share package.

Through its company, CICSA obtained the construction of the terminal building of the new International Airport of Mexico (NAIM), a four-story structure through which an estimated 68 million people were thought each year.

However, the construction of NAIM was cancelled by President Andrés Manuel López Obrador.

Until the end of 2015, it was estimated that he owned approximately 180 companies. Not to mention his first purchase, in the late sixties, a small business called Embotelladora Jarritos del Sur, a soft drink factory.