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.
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 Salvadoran labor sector has already submitted proposals to the government, which said that it will set the minimum wage in the next year.
An article in Laprensagráfica.com reported; "Next year we will revise the minimum wage received by Salvadoran workers, but suggestions have begun to emerge, said Humberto Centeno, Minister of Labour and Social Welfare."
The cost of labor is critical for textile companies which migrate from Honduras to El Salvador and Nicaragua, where wages are lower.
Daniel Facussé, president of the Honduran Manufacturers Association (AHM), states that 16 textile companies have moved their operations from Honduras to Nicaragua and El Salvador since the end of 2008.
For the Businessman, the main reason is the difference in wages between Honduras and its neighbors.
The gaps among salaries from Guatemala, Panama and Costa Rica are disappearing.
When observing the current Pricewaterhouse Coopers study there are some conclusions that stand out. There are categories in the region. Salaries are highest in Guatemala, Panama and Costa Rica, a little lower in El Salvador and Nicaragua, and much lower in Honduras, despite improvements.
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