The country's business sector proposes that elements such as productivity, economic growth and the level of formality be taken into account when calculating the minimum wage, instead of the decision only revolving around the basic basket variable.
The possible changes to the minimum wage in the country is an issue generating expectations among the different sectors, since in the next few days the National Salary Commission (CNS) will have to discuss the proposals to decide if it increases or decreases.
Nicaraguan authorities and workers' unions decided not to make changes to the minimum wage, so it will be until 2020 when the issue is discussed again.
Days ago there was tension over the possible increase to the minimum wage in a context of economic recession, but finally the negotiating table decided not to make any change.
The National Wage Committee approved a 14% wage increase for non-sectorized private workers, which will come into effect next August.
The authorities also reported that they have declared themselves in permanent session to start work on reclassifying companies or updating thresholds.
From the Ministry of Labor statement:
Santo Domingo July 9, 2019. The Ministry of Labor, through the National Wage Committee (CNS) approved this afternoon a 14% wage increase for non-sectorized private workers and at the same time was declared in permanent session to begin work on the reclassification of companies or updating the thresholds.
The increase will apply to the private sector from January 1st, 2019, and will continue throughout the year, applying to all salary categories.
The representatives of the National Wage Council reported that after analyzing the proposals presented, the minimum wage adjustment was unanimously approved on October 24th.
Crhoy.com reports that "... The established amount will apply from January 1st, with a validity of one year and its application will be mandatory for all minimum wages established by the decree. The private sector encompasses around 80% of the working people in our country."
As of January 1, 2018, the increase rate will apply to the private sector, which will apply for all wage categories and will remain in force throughout the year.
The increase approved by the National Salaries Council is one that had been proposed by the associations of private companies in October.
Crhoy.com reports that "...The Minister of Labor and Social Security, Alfredo Hasbum, urged the Council to conclude with the simplification of the Minimum Wage Decree no later than December 15. It seeks to avoid inequalities between groups of workers or economic activities and to simplify the decree."
The private chamber of companies advise to be "alert to any arbitrary and autocratic decision regarding salary increases by the National Minimum Wage Council."
From a statement issued by the Chamber of Commerce and Industry of El Salvador:
After the obvious manipulation on the part of the government in the process of forming the new National Minimum Wage Council (CSNM), the Chamber of Commerce and Industry of El Salvador is calling on the private sector in general, but most particularly on micro, small and medium sized businesses, to be alert to any arbitrary and autocratic decision on wage increases that may arise from the panel in the coming days.
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.
Costa Rican industrialists warn that increasing the minimum wage in the private sector by 34% will cause more unemployment and encourage more companies to operate unofficially.
The bill concerning the minimum wage will endanger plans for new hires in the private sector, and its passage into law could cause more informality and more unemployment. The proposal aims to increase the minimum wage by 34% for unskilled employees in the private sector.
Employers, unions and the government agreed to a 8.5% increase in the minimum wage in all economic activities, starting from January 2016.
The approval for the general rise of 8.5% applies to all activities in the economic regions of the country, except for small businesses.
The Minister of Labor and Workforce Development, Luis Ernesto Carles explained in an article on Capital.com.pa that "...'A general adjustment of 8.5% for all economic activities which does not include small businesses was approved, the Executive will determine the percentage for small businesses, agricultural activities and the banana industry, and the domestic sector.' "
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.
In the discussion taking place in Guatemala on differentiated wages, voices are being heard, speaking from the comfort of their desks, framing the issue as an all or nothing situation.
EDITORIAL
Juan Carlos Tefel, Director of the Board of the CIG and General Manager at Fogel, discusses with entreprenureal pragmatism but also social sensitibility the issue of the definition of differentiated salaries for some Guatemalan communities that have "a high rate of unemployment and 'real' income well below the minimum wage. "
The Executive argues that foreign companies planning to invest in the country desist from doing so if they are not provided with tax incentives and the possibility of paying differentiated wages.
The Government is continuing to put pressure on Congress to approve the Investment and Employment Act which has been temporarily suspended due to several actions of unconstitutionality presented before the Court.
Trade unionists who promote it, the officials who estimate it, the rulers who decree it, are not part of the legion of unemployed who surely would work for less than the official minimum wage.
EDITORIAL
The unemployed have no voice, in principle because they do not pay a sindical fee, and if they did have one, they would not raise it, because it feels devoid of the dignity necessary to do so, because they are used to adopting a very humble position in job interviews. Nothing further impoverishes the human spirit that lack of gainful income of one form or another.
The private sector has rejected the methodology used by the government to establish the increase for this year and presented a proposal to make adjustments in the future.
From a statement issued by the Superior Council of Private Enterprise (COSEP):
The Superior Council of Private Enterprise (COSEP) in light of the unsuccessful negotiations in the National Minimum Wage Commission to reach a tripartite agreement and the political decision of the government through the Ministry of Labour (MITRAB), to approve the minimum wage unilaterally, which is in effect for all economic sectors of the country from March 1 this year, wishes to express the union position on this.