The increase in minimum wages has caused the coffee sector to reestablish its goals for the current harvest.
A new increase in the minimum salary was not included in the projections for the 2009-2010 harvest, according to Salvadoran farmers. With this change, under which they will have to pay $0.78 per each 25 lbs of harvest coffee, farmers will need to change their plans, despite the fact that they pay their workers more than the minimum wage ($1 per each 25 lbs of coffee).
Companies, workers and the government are discussing a new salary increase for the private sector; the initial proposal is for a 10% increase starting January 2009.
Sources close tot he Minimum Salary Superior Council who asked to remain anonimous indicated that the debate is already focused on those figures and terms, but that they are waiting for the Government representatives, and private workers unions to give the last word after internal consultations.
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.
After the dollarization of the economy, the cost of living grew as expensive as in Boston, in London, or in Moscow, with the exception that chaos, violence and lack of services rein here.
The crisis in El Salvador started before the rise the price of oil and world food.
Armando Flores, director of the Consumer Defense Committee (CDC), analyzes the situation on the ground in El Salvador.