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The country’s businessmen, represented by the Andi, Asobancaria, Fenalco, Acopi and the SAC, proposed this morning at the fourth session of the meeting of the Commission for the Agreement on Wage and Labor Policies, a 2 percent increase in the minimum wage that millions of Colombians will earn in 2021. There would also be an equal proportion increase in transportation assistance for those workers.
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This percentage represents 17,560 pesos in monetary terms, on the base salary, with which this remuneration would be 895,363 pesos. However, added to the new transportation subsidy (104,911 pesos), which would increase in equal proportions (2 percent), each minimum wage worker in the country would receive, as of the first fortnight of 2021, about 1’000.547 pesos if this proposal is accepted.
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The businessmen’s proposal is much less than that made by the workers’ centrals that have seat in the Commission, in representation of the workers, of 13.9 percent.
The unified offer of union organizations are framed in four components: basic salary for workers of 1 million pesos, plus transportation assistance of 120,000 pesos; that the National Government assume the payroll of the micro, small and medium enterprises; a basic income for Colombians with lower incomes or who do not have them and that Decree 1174, which provides for the Social Protection Floor.
The spokespersons explained that the proposal is due to the constant growth of unemployment, which lately hits women more; the reduction of income and purchasing power and the increase in informality, among many other factors. They also specified that “workers must have more money so that they can expand their purchasing power and thus contribute to the reactivation of the economy.”
On the other hand, one of the arguments used by businessmen to support their proposal for a 2 percent increase of the minimum for 2021 is that “what is best for the country is create jobs, as well as recovering those that were lost, maintaining existing ones and achieving sustained growth in investment to continue generating jobs, as well as achieving real gains in workers’ wages. “
They also maintain that the situation the country is experiencing is atypical, that companies have had the worst year in history, but that they are determined to continue fighting for the country and to maintain jobs.
In this sense, they pointed out that it should be taken into account that the growth of the economy, as well as the total productivity of TFP factors, was negative, recovery expectations are uncertain, while great uncertainty remains about the economic recovery after the impact generated by the pandemic.
For the next few days, bilateral meetings were planned, while the Commission for the Agreement on Salary and Labor Policies, complying with its schedule, it called for Monday, December 14.
(Continue reading: Unemployment in OECD countries fell to 7.1% in October)
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