Construction: Activity Falls, But Wages Rise

From July 1, the second increase in the minimum hourly wage for construction workers in Panama comes into effect, which occurs in a context of considerable decline in the sector's activity.

Friday, June 28, 2019

The increase is part of the Collective Bargaining Agreement CAPAC-Suntracs, whose negotiation ended a strike that in 2018 lasted more than 30 days. According to official figures at the end of the first four months of 2019, the cost of new construction, additions and repairs fell 28% compared to the same period in 2018.

You may be interested in “Construction Rebound: A Challenge for the New Government" and "Panama: Construction Falls by 28%"

From the Capac statement:

On July 1, the second minimum wage increase enters into force in accordance with the Collective Bargaining Agreement CAPAC-Suntracs, which regulates labor relations between 2018 and 2021.

"It is a gradual adjustment of the agreed salary increases and as practice has been, the CAPAC fully complies with the terms agreed with the workers' representatives," said Hector Ortega, president of the construction guild.

The new adjustment will apply to CAPAC members in the category of general and specialized contractor and to companies that, regardless of their classification, execute construction works as subcontractors of the guild members, according to Clause 3 of the Collective Bargaining Agreement.

Read full statement (In Spanish).

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