The determination of how much and how the minimum wage should be regulated, something that occasionally seems to be done in an arbitrary manner and for political purposes, continues to be one of the factors that most confront Central American businessmen and governments.
In Costa Rica, a 3% increase in the minimum wage was approved for 2019; in El Salvador, an increase is expected to be discussed, and in Guatemala, the commission in charge of the issue reported that no increases will be made this year.
A savings fund, housing loans, expenses for recreation and bonuses, scholarships for children, and restaurant services for employees of the state and the monopolist hydrocarbons distributor of Costa Rica, are financed through the prices paid by consumers, even by the poorest.
One bright spring morning a garden flourished gloriously and everybody wanted flowers. John said "I deserve 10" and the gardener gave him 10 flowers. "I want to take 11" said Peter, and 11 were handed over to him. "I demand 12" protested Manuel, and he got 12. "I want 13" shouted Joseph, and he received his 13 flowers. A lot of people called out their demands and got what they asked for. In the end there was only one somewhat wilted flower left that was given to a mute person with no name. And the gardener was acclaimed for his generosity.
But the following spring the garden produced much fewer flowers, in spite of this, John tried to take his 10, Peter his 11, Manuel his 12 and Joseph his 13 flowers. "That is what corresponds to us," they shouted. "It is our right" they claimed. And they hired a lawyer who filed a lawsuit to force the gardener to deliver what belonged to them by "acquired right". And the judge, who was Manuel, ruled in favor of the plaintiffs.
Using its corporate power and taking advantage of the power vacuum that is afflicting the State, a public university in Costa Rica is paying first world salaries, exacerbating the inequality that exists between Costa Ricans and severely distorting the labor market.
EDITORIAL
The degeneration of democracy which is happening in a lot of Latin American countries has Costa Rica as an example, a country which historically used to be a shining example of the best way to live in society.
Bowing to pressure from those who can choose what to eat every day, the Morales administration has repealed the differentiated minimum wage, denying the right to choose how to live to those who do not have that option.
EDITORIAL
President Morales has put an end to an initiative that aimed to attract investment to four municipalities by applying differentiated minimum wages, yielding to the the high profile power of those who, from the comfort of a heated office and while receiving thousands of dollars in salaries each month, feel that it is reasonable remove the possibility of having a job from those who have nothing.
From the comfort of a heated office and after receiving thousands of dollars in salary at the end of every month, well-intentioned people are trying to take away from those who have nothing, the possibility of having a job.
EDITORIAL
The indispensable struggle for the dignity in jobs and the eradication of slavery of the people living under a wild form of capitalism, has led to the introduction of minimum wages in modern societies.
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 Honduras and Nicaragua the cost that a company must assume to formalize a worker amounts to more than 70% of what they will produce, while in Costa Rica, El Salvador and Panama, it is just under 40%.
From a statement issued by the Inter-American Development Bank (IDB):
Formalizing a worker in Latin America costs 39% of what they produce
Wage and non-wage costs relative to productivity, are 50% higher in Latin America than the average in OECD countries.
The President of the IADB has advised Costa Rica to make a tax reform to raise taxes arguing that today the teetotum indicates "everyone gives".
EDITORIAL
The use of the old fashioned game of a faceted spinner by the head of the hemispheric institution as example, deserves to have the whole story told: the person who spun the teetotum was the Costa Rican government, the same participant of the "game" who on their previous turn benefited from the teetotum when it landed showing "TAKE ALL". Luis Alberto Moreno is saying that the serious fiscal crisis which the country now finds itself in means that now everyone must contribute to its solution. That means aproving more taxes.
In Costa Rica civil servants earn on average 150% more than workers in the private sector, which contributes decisively to the growth of inequality and lowers the overall competitiveness of human resources.
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 "negotiators" for the Government of Costa Rica have suggested "as a starting point" a proposal to increase the salaries of state workers which was met with "satisfaction" by the public employee unions.
EDITORIAL
Imagine you are responsible to the shareholders of a company that is in a very bad financial position, with costs consistently rising above income, meaning that the losses continually mount up and threaten the stability of the corporation.
Recognized Brazilian company of backhoe loaders, telescopic, articulated and other types of cranes looking for companies interested in representing the brand and distributing their machinery in Central America and Mexico. The company manufactures and sells telescopic,...