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Despite the businessmen raising their proposal seven basis points, no agreement was reached. The Government enters to study what the increase will be.
The seventh session of the table for negotiating the minimum wage for 2021 ended without an agreement. This was announced by the Minister of Labor, Ángel Custodio Cabrera, who explained that now the Government will enter to study what will be the most appropriate increase for the country.
Although in the morning the businessmen announced an increase in their proposal to increase the minimum wage, from 2 to 2.7%, no agreement was reached on the matter. The trade union centrals want the minimum monthly salary to remain at $ 1 million (an increase of almost 14%).
Minister Cabrera said, however, that for the moment there is no “last word”, referring to the fact that if any of the parties (workers or businessmen) arrives with a new proposal, with new contributions, there is the possibility of “reactivating” the negotiating table.
Regarding the repeal of Decree 1174 (social protection floor), another of the requests of the workers’ centrals, the official explained that it is not the competence of the Ministry to repeal it, as it is related to a legal mandate (of the National Development Plan) and only regulates when the social protection floor comes into force.
The minister recalled that the Government has invested in aid such as the PAEF (to support payroll and the payment of premiums) and solidarity income, in response to another of the workers’ requests: to subsidize all the payrolls of MSMEs.
It is worth remembering that factors such as the Gross Domestic Product (GDP), productivity (which was negative: -0.06%), the Consumer Price Index (CPI or inflation, are taken into account to determine the minimum wage). which was 1.48% in November) total national year running and annual and the inflation projection for the negotiation period and the following year.
Based on the fall in the performance of the economy and in productivity, low inflation and unemployment, the employers argue that the increase in the minimum wage cannot be above 2.7%. Workers, on the other hand, argue that households require income in order to acquire goods and services and, in turn, reactivate the economy.
The government has until December 30 to issue the decree by which the minimum wage and transportation assistance are adopted for next year.
