Minimum wage: the path that begins to be traveled for its definition

Minimum wage: the path that begins to be traveled for its definition

This Monday, October 24 Negotiations of the minimum wage for 2023 began in Colombia, in the midst of a complex local scenario of high inflation and an escalation of the dollar, as can be replicated in the rest of the world, as well as different approaches to future labor and pension reforms.

(Inflation, a big problem: experts predict how long it will last).

Unlike other occasions, the bid for the minimum began this year long before the official figures with which they will work, projected inflation and productivity, were known. Currently, the annual cost of living is 11.44% as of September and it is expected to reach close to 12% by the end of the year, according to recent studies by Fedesarrollo and Banco de la República itself.

The parties involved, the national government, workers’ unions and the private sector, agreed this Monday on the discussion schedule on the minimum wage according to which the meeting of the Productivity Subcommittee will be held on November 30 and December 1 and the consultation table will be set up on December 5.

Then, on the 6th of that same month, the first session will be held and on December 9th, each party must present its specific proposals on raising the 2023 minimum. From now on, a negotiation stage will follow.

(The formula with which a country can face and get out of a recession).

Currently, from the private sector, specifically from Fenalco, the group of merchants, a possible proposal to raise the minimum wage between 13% or 15% has been handled; from the Government it has been mentioned that it should be greater than 10%.

With a current salary of $1,000,000, without the transportation or connectivity subsidy ($117,000), with the union’s proposal it would be $1,130,000.

On the other hand, Alejandro Useche, an economics professor at the Universidad del Rosario, prefers a 10% increase, “thinking not of covering the inflation caused throughout this year, which is very complex, but thinking that the Inflation in the country will come down next year”. That is to say, that it is anchored to the expectations of the cost of living for 2023 plus some productivity points. Among other considerations, the Fedesarrollo study center pointed to an increase of 20%; while the investment firm Corficolombiana did it by 15%.

the rest of the calendar

From December 12 to 15 will be the days of discussion and agreement on the minimum wage for next year; and just that last day ends the first term to reach an agreement on the amount.

Four days later, the reservations of the parties will be presented; on December 22 the study of the same and finally December 30 is the deadline to agree on the minimum wage in a tripartite manner.

“In this dialogue table we will have all the guarantees to express ourselves and allude to the topics that we want. Here it is about building from difference and respect prevails, “said Gloria Inés Ramírez, Minister of Labor.

The head of the portfolio added that, in addition to activating all the tables and subcommittees, the new employment and employability table was linked, “very important to reflect on the current problems of the country on employment and informality.”

Bruce Mac Master, president of Andi, pointed out in turn that “there is a very good atmosphere to talk” and that he expects a “dynamic and productive conversation”.
Francisco Maltés, president of the CUT, mentioned that “we must recover and maintain the purchasing power” of Colombian citizens.

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