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.
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.
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.
In various departments state officials are owed wages, and at the same time there is increasing pressure from others to be granted increases in their salaries.
Among the sectors that have been affected are employees in the Health department, the Honduran Telecommunications Company (Hondutel), the Public Ministry and the National Police.
For example, the Ministry of Health owes $3.5 million to 672 doctors on contracts nationwide, most have not been paid since January. Another nearly $5 million is owed to nurses and assistants in back wages and some shifts.
The country's private enterprise council (Cohep in Spanish) has indicated that new legislation does not require them to retroactively apply the increase in the minimum wage.
Armando Urtecho, Cohep executive director, has stated that according to articles 96 of the Honduran Constitution and 7 of the Civil Code, the law that came into force on April 1 cannot apply retroactively.
The Honduran Council of the Private Enterprise is considering contesting the retroactive pay of minimum wages.
Santiago Ruiz, president of the council, argued that the law does not match the reality of the country and that many sectors will be unable to comply with it.
“Currently 62% of companies – most of them small and medium – fail to comply with minimum wage regulations. This percentage will only go up”, noted Ruiz.
The increase will be retroactive to January 2011, and will be structured in 9 categories from 6.5% to 13%.
The categories were designed based on economic activity and growth sustained by each industry in the past months.
Felicito Ávila, labor ministry, noted that the official announcement will be made on March 30th and that the categories are "agriculture, hunting, fishing, water and gas, wholesale and retail, personal services, finance, banking and insurance".
Since last December, employers and workers are negotiating a wage increase.
Honduran president Porfirio Lobo, said that in the absence of a consensus between the parties, the government will define the increase.
The Heraldo.hn reported, "The workers are proposing a 22% increase in the minimum wage, meanwhile, it was known that the private sector would agree if the increase was 3.8%."
The textile industry will propose setting a minimum wage for the next three years during the minimum wage negotiation.
The proposal will also be negotiated by manufacturers of car electrical harnesses.
"The talks started in mid December 2010 and will be restored on Wednesday of this week. The director of the Honduran Manufacturers Association (AHM), Jesus Canahuati, said that industry representatives proposed for the minimum wage to have a fixed value until 2014, as it has been done in neighboring Nicaragua," reported Elheraldo.hn.
The government has established by decree a minimum wage increase ranging between 3 and 6%.
The percentage increases varies with the number of company workers and whether it is in an urban or rural area.
"Workers earning $ 291.08 in urban areas, whose companies have more than 50 workers must now receive $ 311.51, so these employees will earn an additional $20.43", explained Tiempo.hn.
The Honduran Council of Private Enterprise (Cohep), reiterated that they are unable to pay a retroactive wage adjustment.
Santiago Ruiz, president of Cohep, told La Tribuna, "What is there to negotiate is an adjustment for 2011; we suggest a meeting and try to advance in what the minimum salary should be in order to have something predictable for the next three years."