While workers ask for a substantial jump, smaller-scale employers warn of the economic consequences.
News Colombia.
The negotiations to define the minimum wage in Colombia face a tense and complicated panorama. According to ACOPI, the Colombian Association of Micro, Small and Medium Enterprises, the possibility of a salary agreement is increasingly remote. The union warns that an increase of more than 7% could be unviable for its members, especially for smaller companies, and highlights the gap between workers’ proposals and the limitations of the business sector.
From ACOPI’s perspective, a substantial increase in the minimum wage is not simply a cost: it could become an unsustainable burden for many companies that already operate on thin margins. For these companies, a high increase implies not only paying more for each worker, but also facing higher associated costs, such as social security and labor responsibilities.
The union maintains that the increase must be “rational” and harmonized with productive capacity, to avoid harmful effects such as layoffs, staff reduction or closure of business units. This position shows how the salary debate in Colombia is not only a labor issue, but also an economic and strategic one for the survival of small businesses.
For their part, unions, representing workers’ interests, have proposed more ambitious increases. In some discussions, an increase close to 9.4% has been proposed, a figure that reflects the real needs of those who depend on a minimum wage to live.
From the employee side, the argument is clear: they need a raise that will actually improve their purchasing power. Inflation, the costs of the basic basket and transportation have become daily obstacles for many families, and a moderate increase does not always represent a substantial change.
Presidential decree risk
Given the impossibility of a tripartite consensus (government, workers and employers), the possibility grows that the determination of the minimum wage will end in a presidential decree. This alternative generates criticism and concerns: while some defend that it is a quick way out to close the negotiation, others warn about a possible democratic deficit in decision-making.
The decree option is not unprecedented in Colombia. In previous negotiations, when no formal agreements were reached, the Executive has resorted to this means to set the salary. However, this mechanism is not always well received by all actors, as it limits multi-party dialogue.
Macroeconomic and social impact
Beyond the direct cost for companies, a significant increase in the minimum wage could have inflationary effects if it is not accompanied by an increase in productivity. Small businesses, which represent a significant portion of formal employment in Colombia, could be especially affected if their labor costs grow without productive support.
At the same time, for many workers, a higher salary is an urgent need: not only as income, but as a guarantee of a minimally decent life. The debate is not only technical, but deeply social, because it involves defining how to distribute the costs of the country’s economic and social progress.
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