NO to the Minimum Wage Increase

The coffee growers oppose the possibility that in El Salvador the minimum wage will be raised, because they assure that the price at which the grain is quoted at an international level, prevents them from paying higher wages.

Wednesday, November 27, 2019

The National Minimum Wage Council (CNSM) began days ago to review the conditions for deciding whether or not to adjust the minimum wage. This situation has alerted several productive sectors, such as coffee growers.

You may be interested in "Coffee: Regional Sales up to March 2019" reviews that "... The Coffee Association of El Salvador (ACAFESAL) maintains that the sector is in crisis and there are no conditions to pay an increase to the minimum wage, but if support measures were applied to the producer, paying the increase could be viable. Among the measures they propose is economic recognition for the environmental services of the coffee forest, the regulation of the cost of transformation - which is what the benefits charge to process coffee from grape to exportable gold."

The article adds that "... In addition, regulate coffee imports to boost local consumption of national grain and eliminate VAT on agricultural inputs. These measures have already been proposed by the union, but have not transcended."

According to the producers, the other proposal is that the minimum wage be set according to the reference price on the New York Stock Exchange.

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More on this topic

Avocado as an Alternative to Coffee Cultivation

September 2019

In Nicaragua some coffee growers have decided to replace their crops with avocado plantations, because the international price of coffee has reported low prices in recent years.

According to reports from CentralAmericaData, in the last seven years the average price of regional coffee exports has registered a clear decreasing trend, going from $4.86 per kilo in January 2012 to $2.57 at the beginning of 2019.

Coffee in Central America: Different Realities

May 2019

While producers in El Salvador predict that the local crop could be extinct in the next two years because of falling international prices, other countries in the region place grain at more favorable prices.

Each country's realities are different, as there are several differences that are reflected in the amounts exported and in the average prices at which the grain sells abroad.

Adjustment to Minimum Wage in Nicaragua

August 2012

Starting on the first of September the minimum wage will increase by between 4% and 6% depending on the sector.

The adjustment will be 4% for the micro and small crafts sector, as well as for the tourism activity. For the remaining companies, the required increase will be 6%.

Costa Rica's private sector salaries to rise by 6.58%

June 2008

Workers in Costa Rica's private sector are about to get a 6.58 percent raise.

Persons in this sector and those who have a "semi-qualified" employment will receive this amount plus a 4,000-colon monthly subsidy of 4,000 colons (about 7.69 dollars).
Those who do not have specific qualifications will get the same salary increase and a 5,000-colon subsidy (about 9.61 dollars).

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