Minimum: positions in favor and against Duque’s hike proposal

President Ivan duque surprised this Sunday, December 12, by launching a proposal for the minimum wage increase by 2022.

As he said, the idea is raise it 10.07%, which would leave the figure at around one million pesos without counting the transportation subsidy.

He also commented that they have been working with some business sectors in the country for three months and highlighted the good attitude they have had.

“The message transmitted by the National Association of Entrepreneurs (Andi), the Society of Farmers of Colombia (SAC), the National Federation of Merchants (Fenalco), we know that it is an effort of the entrepreneurs of our country and that is how we have to give a great answer to the workers of Colombia: that we can reach that million pesos this year only in that salary component“, He said.

Bruce Mac Master, president of Andi, confirmed that they have been working on build the best and most supportive proposal of minimum wage increase and that in the entity that directs “We support an extraordinary increase of 10.07% for minimum wages so that they reach one million pesos“.

“2020 and 2021 have been complex for everyone: families have seen their purchasing power affected by inflation in terms of food, the State has faced an economic emergency and companies have been fighting against conditions that have led, in some cases, to close. operations“contextualized Mac Master.

He then said that this year is solidarity and that is why the best efforts must be made: “We have been working on trying to build a proposal that allows us to reach the highest possible level and we agree with the proposal to reach a salary of one million pesos. We must take care of variables such as competitiveness, inflation, employment, formality, but solidarity prevails over any other rationality“.

Finally, he said that they hope the proposal allow for quick consensus with workers’ representatives and “that together we build a united and supportive Colombia“.

ANOTHER CALL

Allies, an alliance of 25 guilds and associations, also spoke about Duque’s proposal and asked that it be guaranteed economic stability, the purchasing power of Colombians and the productive capacity of companies.

“It is true that a better salary can lead to higher productivity depending on the case and the environment in which it occurs, and this is how the Nobel laureate in Economics David Card puts it in his theory on the effects of salary and productivity. But Card’s experiment in fast food restaurants also found that the menu increased in price: the cost is always paid.“he added.

He assured that the effects of the covid pandemic continue, that companies are sailing against the current and that “an excessive burden on the salary and its wide repertoire of benefits will put MSMEs, which are 90% of the country’s companies, in difficulties. That is the reality and without productive MSMEs there will be more unemployment“.

The alliance requested that the discussion of the minimum increase be extended to all aspects that make the salary not enough “for those who receive it and excessive for those who pay it” and consider the myriad variables that “they have us immersed in a permanent tug of war.”

“We must see the issue of the minimum wage as something more complex, consider all the variables and make a little more effort to find comprehensive solutions that stimulate formalization instead of repeating the old logic of extreme proposals, closed doors and Solomonic solutions.“he added.

Finally, Aliadas made a invitation to those who are part of the negotiation table of the minimum so that it is thought “in the common good, that we promote a national and permanent dialogue on the fundamental problems of the Nation, and that we exercise sensibly and realistically to ensure that the benefits of the negotiation are for all“.

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