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During Monday’s session, only technical issues were discussed. The gap between the proposed salary increases is estimated to be close to $ 100,000. Discussions will resume this Wednesday.
This Monday began negotiations between the labor unions and the business unions to define the increase in the minimum wage that will govern in 2021, a payment that is currently at $ 877,803 plus the $ 102,854 of transportation aid (accessed by those who earn less than two salaries) .
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This Monday’s meeting ended without further announcements about the salary increase proposals, as only technical issues such as the analysis of unemployment were discussed, a figure that stood at 14.7%. The other key data for discussions are productivity and inflation for November.
In fact, The viewer He learned that there is already controversy over the productivity data, since the unions criticize the government’s methodology that gives a negative data for this indicator.
While there are still a couple of sessions left for the discussions to get off to a good start, there is already information on the parties’ proposals. (Read also: Lower wages: is the vaccine worse than the disease?)
The workers’ centrals announced a couple of weeks ago that they want the minimum wage to reach one million pesos (without transport assistance), which represents an increase of 14% (an increase of more than $ 122,000).
For their part, business unions have only mentioned the need for the salary increase to be adjusted to the economic reality of the country to support economic reactivation and job creation.
That is, they will surely make a proposal very close to the sum of expected inflation for the end of 2020, which is expected to be around 1.7%, and the productivity data for the year. In other words, it is probable that the union’s proposal is between 2 and 3% (which is ANIF’s proposal), which would leave the minimum wage close to $ 900,000.
That is, the gap between the parties’ proposals would be about $ 100,000, or about 12 percentage points. Which gives little hope for an agreement to increase the minimum wage.
However, it is not something strange for this annual ritual: in the last 36 years only seven agreements to increase the minimum wage have been reached. And although in recent years there were a couple of agreements (for the minimum wage 2018 and 2019), the agreements were made without the Central Unitary of Workers (CUT) or the Democratic Confederation of Pensioners (CDP).
For this reason, the pandemic, the soaring unemployment, the economic recession, and the social unrest that has been dragging on since the unemployment of November 21, 2019 are a series of conditions that make the negotiations of the minimum wage 2021 in one of the most difficult in history.
Tomorrow’s meeting was canceled, and Minimum wage discussions will resume this Wednesday December 2, 2020.
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