After Panama's National Assembly approved a legislative bill that sets the minimum wage for workers in the maritime industry at $4.15 per hour, local businessmen have expressed their disagreement.
The document approved in third debate, establishes in its articles that workers of concessionary companies, contractors and subcontractors of ports and maritime transport terminals will earn a minimum wage of $4.15 per hour throughout the national territory, informed the National Assembly on April 12, 2021.
Arguing that the economic and social effects of the covid-19 pandemic in the country have been considerable, the local authorities decided that during 2021 the minimum wage will not be increased.
In no case will workers be able to have a salary lower than that set in Governmental Agreement 250-2020, which goes into effect as of January 1, 2021, the statement from the Ministry of Labor and Social Security points out.
After the Guatemalan Constitutional Court suspended the implementation of differentiated salaries in 2015, the Giammattei administration plans to discuss the application of regional minimum salaries during 2021 and the plan is for them to enter into force in 2022.
In 2015 the Guatemalan government established differentiated salaries for the municipalities of Masagua in Escuintla, Guastatoya and San Agustín Acasaguastlán in El Progreso and Estanzuelas in Zacapa.
In a context of a sharp drop in economic activity, the government decided to increase the minimum wage by 2.63% as of 1 March.
The increase, which was agreed by the Ministry of Labor and which will affect ten economic activities, was endorsed by the authorities on 6 February. Workers in free zones will be the only ones not to be subject to this increase, since wages in this sector were raised at the beginning of the year.
The average rise is 3.3%, varying from 1% to 8% depending on economic activity, and will be in effect from January 15, 2020.
In the case of the education sector, free zones, hotels, agriculture and water supply the increase will be 1%, while in the area of Bocas del Toro where banana companies operate the adjustment will be 8%.
For workers in non-agricultural, maquila and export activities, the minimum wage will increase by 3% this year in relation to what was paid in 2019.
Government agreement 320-2019, published in Diario de Centroamérica on December 30, 2019, specifies that the minimum monthly wage for agricultural activities will remain unchanged for the second consecutive year, and will continue at $388.12.
The Panamanian business sector believes that increasing the minimum wage under current conditions will generate more unemployment and increase informality in the labor market.
With the possibility of an increase in the minimum wage next year, the National Council of Private Enterprise (Conep) insisted that in the context of the economic slowdown, it is not possible to increase workers' pay.
With the recent signing of the U.S.-Canadian-Mexican trade agreement, a precedent was set for future negotiations, as this agreement sets binding labor conditions, such as making exports subject to the payment of a minimum wage.
For example, one of the conditions of the Treaty between Mexico, United States and Canada (T-MEC), which was signed on December 10, 2019, is that vehicles exported from one state of Mexico to the other two countries "must come from plants that pay wages not less than $16 an hour.
The coffee growers oppose the possibility that in El Salvador the minimum wage will be raised, because they assure that the price at which the grain is quoted at an international level, prevents them from paying higher wages.
The National Minimum Wage Council (CNSM) began days ago to review the conditions for deciding whether or not to adjust the minimum wage. This situation has alerted several productive sectors, such as coffee growers.
Costa Rican businessmen warn that the government's decision to standardize wages in 2020 will lead to more unemployment, affect workers with less education and reduce competitiveness even further.
For the business sector is imprudent to approve and implement the wage standardization in 2020, since it will have a strong impact on productive sectors such as agriculture, trade, transport, tourism and construction, explains a statement from the UCCAEP.
The 2.53% increase approved for the minimum wage for private sector workers in Costa Rica will be in effect from January 1 next year.
With this increase, a messenger worker who has an Unskilled Occupation and earns today ¢309,143.36 ($518) per month will earn ¢316,964.68 ($531) as the minimum wage, the government said.
For the minimum wage adjustment planned for January 2020 in Costa Rica, the business sector proposes a 2.53% general increase.
The Unión Costarricense de Cámaras y Asociaciones del Sector Empresarial Privado (UCCAEP), representing the formal private business sector, submitted the salary adjustment proposal to the National Salaries Council.
The union sector aims for a minimum wage of $1,040 by 2020, but employers say the current economic situation does not lend itself to substantial increases.
Workers, employers and government representatives in Panama are discussing adjustments to the minimum wage, the changes to which must come into effect on January 1, 2020.
The country's business sector proposes that elements such as productivity, economic growth and the level of formality be taken into account when calculating the minimum wage, instead of the decision only revolving around the basic basket variable.
The possible changes to the minimum wage in the country is an issue generating expectations among the different sectors, since in the next few days the National Salary Commission (CNS) will have to discuss the proposals to decide if it increases or decreases.
Nicaraguan authorities and workers' unions decided not to make changes to the minimum wage, so it will be until 2020 when the issue is discussed again.
Days ago there was tension over the possible increase to the minimum wage in a context of economic recession, but finally the negotiating table decided not to make any change.