According to the COFE board of directors, through a statement, the President of the Republic, Luis Lacalle Pou, “failed to fulfill his electoral campaign commitment, and applied salary reduction measures systematically and consecutively during the last two years.”
They assure that while inflation, measured in terms of the evolution of the Consumer Price Index, during the year 2020 was 9.41%, the salary adjustment for January 2021 was 4.41%, which meant a salary reduction of 5%. “In a salary of 30,000 pesos, it implies a cut of almost 20,000 pesos a year.
Meanwhile, in 2021 inflation was 7.96%, while the salary adjustment for January 2022 was 7.06%, “which means a new salary reduction and an accumulated loss of 6%.” They also exemplify that in a monthly salary of 30,000 pesos, the salary cut in the year is almost 24,000 pesos.
“This salary situation is not consistent with the evolution of the economy, which has recomposed itself to pre-pandemic values, but, nevertheless, the government continues without increasing salaries,” questions COFE.
They indicate that, meanwhile, there is an increase in the concentration of wealth in those who have the most, the workers and their salary are the government adjustment variable”.
The confederation regrets that the government “has not made any proposal to ensure the recovery of the lost salary, but rather the proposals enshrine the salary reduction throughout the period.”
“In addition to this, we are also unaware of the articles that the Executive Branch will incorporate into the Accountability Report and that may affect the administrative career, working conditions and labor ties,” they warn.
For this reason, COFE requested to know the budget guidelines regarding investments, operating expenses, restrictions on other expense items that may affect working conditions, but “the Executive Branch refused to provide that information.”
They urged the President of the Republic, Luis Lacalle Pou, the Minister of Economy, Azucena Arbeleche, and the Executive Power, to sign a collective agreement “that establishes that at the end of the government period, salaries will maintain their purchasing power, and define a schedule to implement the recovery of lost wages”.