In Guatemala people are now suffering from the "labor agreements", which come from the same strain of virus as the "Collective agreements" which have made the State Costa Rica sick, distorting the labor market and generating inequality.
EDITORIAL
The editorial "Harmfulness of labor agreements in the public sector", published today on Elperiodico.com.gt, might have been written some years ago to describe Costa Rica. Guatemala still appears to have a chance to react to the disease, with proper medication. In Costa Rica, however, the disease is so widespread that major surgery is needed which today does not seem feasible, and the only thing left is to wait for the inevitable final crisis.
In a context of high unemployment and informal work any increase in the amount of the minimum wage produces more unemployment, more informality, and consequently, more poverty and inequality.
In Costa Rica, the latest numbers released by the National Statistics Institute (INEC) located unemployment during the first quarter of 2015 at 10.1%. If you add those who are not unemployed but who have informal jobs, which is 45.3% of the working population, you can tell why almost half of the population in Costa Rica who wants to work do not get better incomes if the minimum wage is increased.
Before negotiating a new amount for the minimum wage in Panama, the Chamber of Commerce, Industries and Agriculture notes that "those who strive more should receive more."
From a statement issued by the Chamber of Commerce, Industries and Agriculture (CCIAP):
With the establishment of a table for revision of the minimum wage, involving business associations and workers in mediation with the government, a process has been started that we hope will be carried out in accordance with the spirit for which this provision was set.
The Ministry of Labour and Social Security has updated the structure for minimum wages for different productive sectors, with effect from January 2015.
From a statement issued by the Ministry of Labour and Social Security of Honduras:
As of January 1, 2015, employees who are affected by the general minimum wage have an automatic increase in salary ranging from between 5.3% and 8%, depending on the number of employees the company has and its activity, as announced by the Secretary of State in the Ministry of Labour and Social Security, Carlos Madero Erazo.
The government has announced that from January 1 there will be an increase of 4% in the legal minimum wage in the productive sectors.
The rise corresponding to this year, 2015, is part of an agreement reached in 2013 and modifies the table for minimum wages, increasing the minimum monthly wages for workers in different sectors by 4%.
Differences have been reported of up to one thousand percent in the salaries of staff performing identical functions in state universities.
Editorial
A study by the deputy Otto Guevara, according to a report by Crhoy.com, confirms the distortion generated by the wage policy of the Costa Rican public sector in the labor market in the country.
Through remuneration systems that favor the stability of the employee and reward the simple continuity in a post beyond the adequacy with which tasks are executed, it is possible that even within the same institution one driver of a light vehicle can receive $300 a month, while another one earns $3,750.
The Ministry of Labor has announced that as of January 1, 2015 a 5% increase in minimum wages in the productive sectors will come into force.
From a statement issued by the Government of Guatemala:
The Minister of Labour and Social Welfare (MTPS), Carlos Contreras, reported that the minimum wages for 2015, corresponding to agricultural, farm, maquila and non-agriculture sectors will increase by 5%, which is the third consecutive increase recorded during the administration of President Otto Perez Molina.
With support from the business sector the wage adjustment which will be effective starting january 2015.
The increase in salaries approved by the National Wages Council is less than the amount requested by workers in the private sector; the difference is 0.90%. Requests from the various workers representations ranged from 2.91% to 5.7%.
Edgar Morales, representative of the National Union of Workers, told Nacion.com that "...
The increase, which will be applied from September 2014, varies between 4.9% and 5.38%, and applies to all industries, except the free zone regime.
The wage increase ranges between 4.9% and 5.38% depending on the manufacturing sector concerned.
Laprensa.com.ni reports that "... Wages in the free zone will remain at 4004.64 Cordobas. Meanwhile, small and medium tourism enterprises will have a minimum salary of 3142.25 Cordobas; electricity, gas, water, trade, restaurants and hotels, transport, storage and communication will be paid at least 5253.68 Cordobas; and in the construction, financial institutions and insurances sectors the wage is 6.4100 Cordobas . "
Unions reject a proposal by industrialists to work 4 days and rest 3 days, whle the government describes it as a "sensitive" issue.
The Minister of Labour, Victor Morales, told Crhoy.com that "....These proposals concerning working hours require legislative amendment, they need a reform of the Labour Code to be approved in the Legislature ... I proposed to the Chamber of Industries ...
For the second consecutive year the increase was agreed between the private sector, trade unions and the Government.
A press release from the Government of Guatemala reads:
The Government of Guatemala has announced an adjustment to the minimum wage for 2014, representing an increase of 5%, as was announced by the Minister of Labor, Carlos Contreras. The increase will benefit 1.5 million Guatemalans formally working in the country.
Through this move, transfers by private and state employers to the Nicaraguan Institute of Social Security will increase by $26 million.
This was announced José Adán Aguerri, president of the Superior Council of Private Enterprise (Cosep). Of that $27 million, $6 million will be provided by state enterprises and the rest by private companies.
"This increase in the employer contribution is something that has been established in the negotiations we have had with the government," said the chief of Cosep.
Performance bonuses and other variable compensation schemes weigh increasingly on the total compensation of senior managers.
In order to motivate and retain executives companies are tending more and more to compensate their executives with salary schemes where the variable proportion and that dependent on performance is increasing.
Paying with company stock, profit sharing from stocks or performance bonuses are some of the payment methods being used by companies for senior managers, as detailed in a report by consulting firm PriceWaterhouseCoopers.
The industry average nominal wage is $549, but in certain areas such as paper and cardboard it is $609.
This was explained Doris de Rivera, industrial manager of the Salvadoran Association of Industrialists (ASI). Globally, private sector employment has increased by 31% compared to the first six months of last year.
Elsalvador.com reports: "Regarding the increase in the number of jobs in companies which produce and distribute paper, cardboard and printing there was an increase of 4.2%, approximately 337 jobs."
In order to balance the social security finances the Government of Nicaragua wants to increase employer's contributions from 16% to 19% .
Bayardo Arce, economic affairs adviser to the President, was the person who presented the project to representatives of the Superior Council of Private Enterprise (Cosep).
"... The first point of the proposal is that the Government undertakes to pay 2% of the state's debt to the INSS, estimated between $580 and $600 million, or pay it off within 50 years", reported Prensa.com.