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The Labor Commission of the Chamber of Deputies and Deputies rejected the readjustment to the legal minimum wage that the Government proposed, which consists of an increase of 1,500 pesos.
In the opposition they will ask to advance towards the poverty line in the rest of the process, although unions of small and medium enterprises said they were not in a position to assume higher salaries.
Without the presence of the Government, the process of readjustment to the legal minimum wage continued, which was rejected by the Labor Commission, which reviewed the Executive’s proposal until it was fully dispatched.
There were expositions from economists and also from small and medium-sized business associations regarding an increase that the Ministry of Finance intends to limit only to inflation, which, from March to date, it accumulates 0.4%.
That translates into an increase of 1,500 pesos, with which the basic salary would be 322 thousand pesos. The argument is the economic crisis that, as they say in the Treasury, puts the country at productivity levels of 2017, when the minimum income was below 300 thousand.
The counterproposal is a horizon raised by the Central Unitary of Workers (CUT), which proposes to raise that figure to 400 thousand pesos, taking the Guaranteed Minimum Income as a parameter.
The secretary general of the multisindical, Nolberto Díaz, said he has high expectations that the discussion in Congress will take care of the costs that workers have had to absorb in the pandemic, and that it considers their consumption capacity.
“Of the 10%, it was also said that it would not work, and it happens that it ended up helping millions of Chileans and reactivating the economy. But we also want the government to guarantee that the layoffs will end, and along with that, we must also ensure that those who were suspended will go back to work and will not add to the list of laid off in this country. And we are in favor of subsidizing companies, but not just any company, “he said.
The Executive’s proposal already suffered a first setback in the Work Commission where the project was rejected in its entirety the idea of legislating that now it will have to go with a negative report to the chamber of the Chamber.
The biggest criticisms were of the absence of the Government in the discussion, given that, although they said they could understand the complex labor scenario, that must go hand in hand with a commitment to review this in depth again in March, or even establish a policy of increases.
The horizon, as proposed by the CUT, is to get closer to what is proposed as the poverty line, according to the Socialist deputy, Gastón Saavedra.
“We must prepare ourselves to be generous with those Chileans who have had to bear the cost of the crisis with their sacrifice, with their effort, with the loss of their jobs in many cases. The Government has not hesitated to take measures to save companies. Today is the time that we save 900 thousand Chileans who live on the minimum income. We must reach at least the line to overcome poverty, which today reaches 368 thousand pesos, ”he says.
“The fear we have is that there will be a more considerable increase in unemployment”
Different unions of small and medium-sized enterprises also participated in this commission, which, although they were open to discussing a more comprehensive policy, indicated that the design of the subsidies should support them in order to assume the readjustment.
“The problem is that when you pay the payroll, you start saying ‘the minimum wage was taken from me so much, what should I do? I’m going to have to unlink someone. ‘ That is the fear that we have that there will be a more considerable increase in unemployment if the minimum income is taken from the real amounts that the economy and the sector can sustain, “said the vice president of Conapyme, José Carreño.
In the ruling party, meanwhile, propose an alternative solution that consists of advancing a slightly higher increase, close to 4 thousand pesos, which would have to do with the inflation projections for the month of March, when the readjustment has to be discussed again, as explained by the UDI deputy, Patricio Melero.
“The biggest push has to be to create jobs and repair those that have been lost. I think there may be some margin given that the bill establishes that in March it will be readjusted again and we could perhaps advance the inflation that is going to take place by 1.2%, and make a greater increase at this stage, “he says.
Another mechanism to which openness was shown went to a modification of the Guaranteed Minimum Income, which today subsidizes a liquid salary of 300 thousand pesos. It has been said that this can be increased, focus on small and medium-sized enterprises or establish a special subsidy so that the SME can absorb an adjustment.
⭕️ NOW | The Labor Commission rejects by 7 votes against and 6 in favor the project that readjusts the amount of the minimum monthly income, seeking to reach an agreement with the Government to improve the proposal.
It will go to the Hall. pic.twitter.com/Gxl9VHWfUr
– Deputies and Deputies of Chile (@Camara_cl) September 3, 2020
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