‘Important figure’: the union defense of the increase in the minimum decreed by the Government

While business associations and some experts have questioned the 9.54% increase for the 2025 minimum wage, The unions have celebrated the decision and they have described it as a figure “really important and significant“.

(See: President Petro’s ‘hit’ on businessmen by announcing an increase in the minimum).

Fabio Arias, president of the Unitary Central of Workers of Colombia (CUT), explained that the “9.54% increase in the value of the minimum wage, plus 200 thousand pesos in transportation assistance, means an average increase of 11% compared to last year“.

The minimum as such will go from 1,300,000 pesos to 1,423,500 pesos, and With the aid it will be 1,623,500 pesos.

“The increase is a way to reduce the serious wage gap that neoliberal and pro-business governments previously left us“he added.

(See: Risk for companies, hunger and unemployment, alerts that unions see due to an increase in the minimum).

He also said that the increase was possible thanks to the efforts of the workers and “a situation that the Petro government received, recovering rights for minimum wage workers“.

Likewise, he pointed out those who criticize the decision and said that “It cannot be that only the always privileged have rights. The Petro government continues on the path of recovering rights this time for minimum wage workers. They can spoil the party by raising everything and generating speculation and inflation. It’s revenge“.

(See: This was the moment when Petro announced the increase in the minimum for 2025).

Criticism of the increase

Among those who questioned the 9.54% increase to the minimum were Bruce Mac Master, president of the National Association of Industrialists (Andi), and who said that “Populist decisions end up being a celebration for a few days and hunger for the future.”

“It is almost always about making announcements that many people can celebrate, but ends up generating immense costs for the entire society in the future, especially for the most vulnerable. This is not new, this has already been put into practice by many leaders in many places on the planet, and the results are always more poverty, less development, more unemployment, more fiscal costs for the State and finally despair of the rulers.“he added.

(See: Minimum wage 2025: President Petro announces that it will rise 9.54% starting in January).

Luis Fernando Mejía, Executive Director of Fedesarrollo, explained that the 2025 increase is one of the highest in the silo in real terms (discounting inflation).

“This increase is similar to that of 2022, which generated negative effects on the labor market and prices, by increasing inflation during that year and the following year.“.

Besides, asked formal employees to consider some effects: “First, by substantially increasing the cost of formal employment, it will further induce informal hiring, especially in microenterprises. Second, it will put upward pressure on inflation, delaying the reduction of interest rates by the Bank of the Republic“.

(See: How much transportation aid was set for 2025 with an increase in the minimum wage).

CAMILO HERNÁNDEZ M.
Digital Portfolio Editor