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The Klaipėda Bar Centras representative, who did not want to introduce herself, said directly and clearly that “There will be forks!” (Smooth translation from Russian.
“Who will pay those salaries, maybe the government?” Asked the interlocutor. According to her, increasing MMA will make all products more expensive. Redundancies will be needed.
“Is it necessary to appreciate beer? Who will drink it then? Who’s going to go to cafes in general ?! ”Said a representative of the Centro bar, who does not really support the government’s plans.
The government must show solidarity
Entrepreneur Antanas Bos says that MMA must be increased because it is dictated by economic logic.
“A strategic mistake has been made. We are seeing that we become a country of benefits and subsidies, there are many job vacancies, especially those that do not require a degree, and many unemployed. That means that people choose the benefits,” says Bos However, according to him, the increase in wages will inevitably increase inflation, and the projected increase of the MMA to 730 euros is too big a jump.
“Unless the government shares the burden with the company and increases the share of tax-free income proportionally, it would be more beneficial to the employee,” Bos told Western Express. According to him, such a large jump in the minimum wage can have the most negative impact on small businesses and companies in the regions.
“Layoffs and even bankruptcies are possible,” says Bos.
Sensitive sectors
“I am in favor of increasing wages,” Vaidas Ramanauskas, general director of the UAB Klaipėdos autobusų parka, told Vakarų ekspresas.
However, he points out that companies are living in a pandemic situation. There are sectors that are experiencing a rebound, but some businesses are suffering losses. The company he runs is a passenger transport industry that has seen a sharp decline in recent years.
“There are only a few employees in the company who receive the minimum wage, but if their salary goes up, it is natural that it is necessary to review the salaries of other employees in the company,” says V. Ramanauskas.
According to him, the situation is complicated by the fact that Klaipėda Bus Fleet performs a large part of its services after winning tenders with fixed rates.
The duration of the contracts is also ten years. “We won some contests while the litas were still in place,” says V. Ramanauskas. The minimum wage at the time of conversion was 300 euros (another tax system applied).
According to the director, the Klaipeda bus fleet is currently in a unique situation. As a municipal company, it can no longer claim state support as a victim of a pandemic, despite operating under market conditions.
“We received support during the first quarantine, and not now,” says V. Ramanauskas.
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