On September 1 a second increase of 4.5% will come into effect as agreed earlier this year in negotiations between the government, unions and employers.
With the 4.5% increase the minimum wage will be $180.7 a figure that will be maintained until March 2017, when the members of the Tripartite Minimum Wage Committee will meet again.
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Bowing to pressure from those who can choose what to eat every day, the Morales administration has repealed the differentiated minimum wage, denying the right to choose how to live to those who do not have that option.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.
Through a tripartite agreement an adjustment to the minimum wages in all sectors was established at 9% , and 8% for SMEs.
The announcement made by the Ortega administration, in agreement with unions and the business sector, establishes an increase of 9% starting from this year.
"... The adjustment to the minimum wage will be made in two parts, the first from March 1 and the second from September 1. "
In January the minimum monthly wage in companies operating under the free zone regime will change from $159 to $171.
The adjustment which has been in force since January this year is the result of multi-year tripartite agreement signed in December 2012 and applied to 109,000 employees working in free zone enterprises. This was reported to Laprensa.com.ni by Dean Garcia, executive director of the Nicaraguan Association of Textiles and Apparel (Anitec).
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 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.
As of September 30 an increase of 7% will be applied to the minimum wage in the construction sector.
The president of the Superior Council of Private Enterprise (COSEP), Joseph Adam Aguerri announced that the unions had initially requested 11%, but eventually negotiated it down to 7%.
".. The adjustment will take effect on September 30, when it is made official by the Ministry of Labor.
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.
In recent years, Nicaragua has characterized as the country with the highest wage adjustments in the region, even above inflation, averaging 6.8% a year.
Elnuevodiario.com.ni reports that "... Of all the countries in Central America the market wage adjustment made by make small, medium and large companies for their employees each year has been the highest in Nicaragua with an average of 6.8%, even above the projected inflation for this year which is 5.5%, according to a survey carried out by Pricewaterhouse Cooper. "
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 Nicaragua the average wage grew by 3.8% in the first quarter of 2015: Low wages are a big advantage in attracting investments which drive economic development and increasing salaries...
The salary of formal workers in Nicaragua went from $312 in December 2014 to $324 in March this year, an average between the highest and lowest according to the economic sector concerned.
Wages of $150 make Nicaragua a magnet for investments in the region seeking competitive costs.
The Nicaraguan economy is backing competitiveness through lower wages, giving it an advantage over its Central American neighbors.
Regarding the wages earned and the situation, Dean Garcia, executive director of the Nicaraguan Association of the Textile and Clothing Industry (Anitec) told Elnuevodiario.com.ni "...