The increase applies to minimum wages of private sector workers starting from July 2016.
From a statement issued by the Costa Rican Union of Chambers and Associations of Private Business Sector (UCCAEP):
The National Wages Council established, on the afternoon of Wednesday, an increase of 0.5% for minimum wages of workers in the private sector starting from July 2016.
The private sector has asked the government to seek consensus on the issue among the productive sectors, in the context of a slowing economy.
Unlike the last adjustment that was made in December 2013, this year the negotiations will take place in a different economic and political context, where elements such as mild slowdown in economic activity and differences between the private sector and the Varela administration will put to the test the negotiation process.
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 "...
Opposed by employers, the government approved the salary adjustment which will be effective in the first half of July 2014.
With the backing of the government and the unions approval as given to the pay adjustment for the second half of the year, which according to the Ministry of Labour, was a "... midway point between the 1.33% proposed by employers and the 3.15 % requested by the National Union of Workers (UNT).
The Ministry of Labor will define the wage adjustment in the absence of an agreement between the private sector and trade unions.
In the last meeting on 13 March the parties were not able to reach an agreement. The private company proposed an increase of 9%, while unions demanded an adjustment of between 10% and 14%.
Freddy Blandon, representative of the Superior Council of Private Enterprise, Cosep noted that "...
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."
The approved increase applies to the first half of 2014.
"The amount approved by the National Wages Council factors in projected inflation of 2.47%, 0.77% of cumulative inflation for the first half of this year and the adjustment for GDP growth in the last five years (0.54%)," says Patricia Recio in Nacion.com.
Entrepreneurs had proposed an increase of 3.60%, unions 3.96% and agriculturalists 3.24%.
The business sector has proposed a raise between 3.24 and 3.60% in the workers´ wage for the first half of 2014.
The first proposal was presented by the National Chamber of Agriculture and Agribusiness, who believes that the increase should be 3.24%.
Nacion.com reports: "... considers the projected inflation figure and compensation for inflation in the first half of this year and does not take into account the adjustment of GDP growth, because the industry has presented a constant deceleration in recent months," said Juan Rafael Lizano, president of the Chamber".
The National Wages Council has approved the increase which will take effect from July 1 and will affect nearly 1.2 million private sector workers.
According to Zayda Solano, president of the National Wages Council the increase which corresponds to the adjustment for the second half of 2013, was adopted by the majority.
"The government made a proposal to respect what unions and employers had agreed.
The regulation increases the size of the "aguinaldo" (extra salary at the end of the year), depending on the number of worked years.
Those who have been working in a company for between 1 and 3 years will receive 15 days worth of 'aguinaldo' (end of year salary payment), those with between 3 and 10 years will receive 19 days worth of aguinaldo, and those who have worked for more than 10 years, will receive 21 days worth of aguinaldo.
The unions proposed to the National Wages Council an increase of 3.03%, plus an extra 20% over the next four years for minimorum minimum wages.
"This 3.03% corresponds to 2.47% for projected inflation and 0.56% for an outstanding debt. In addition, we propose that the minimorum minimum wage should be increased to 20% over four years until the percentage is reached, therefore in July there would be 8.03% for those workers, 3.03% of the normal rise 5% for the outstanding amount" said Edgar Morales, a member of the Union of Public and Private Sector (SITEPP).
Between the 2.47% proposed by employers and the 6% sought by union representatives, 5% has been settled on by the Central Bank as a starting point for inflation.
In the restart of negotiations between representatives from the employers, workers and the government over adjustments to private sector salaries in the second half of the year, workers have not gone with a single proposal.
The National Wages Council has finally approved the proposal submitted by the government to set wage increases in the private sector.
From 1 July private sector workers will receive an increase of 2.55% and for those employed within the lower income categories, the increase is 3.5%.
In this way, for workers who are within the unskilled, semiskilled, skilled and specialized categories, who receive a daily salary, along with to those within the unskilled, semi-skilled and qualified categories but who are paid monthly, the increase is ¢3,500 ($ 6.93) per 100,000 colones ($198).", noted an article Prensalibre.cr