First differences due to the minimum wage

The setting of a new minimum wage in Panama is sure to confront the business and union sectors again, amid the current social and political crisis.

Unions united in the National Council of Private Enterprise (Conep) warn that if the roadblocks continue, there will be no possibility to agree on a new minimum wage.

The president of Conep, Rubén Castillo Gill, said that the current road closures even harm the mission of the minimum wage commission, which cannot be transferred to the provinces as part of its task.

He added that one should also look at the dynamics of companies affected by blockades.

“We’re going to talk about something based on or looking at the bleak private company panorama that’s affected by the conditions that are emerging,” Castillo said.

The president of the business union did not want to give further reactions on the subject, but Elisa Suárez, the former president of Apede, did, who said that if the crisis spreads, there will be no possibility to increase wages.

“The result of this period is that companies will not have any opportunity to discuss anything about the minimum wage, because the conditions that have been presented will not allow it,” warned Suárez in an interview with Eco TV.’

2

year, the minimum wage is governed by the two regions of the country into which it is divided.

13%

was the increase that workers in the banana industry received from 2022.

With regard to the accusations of the businessmen, Eduardo Gil, the representative of the workers, stated that he would no longer accept “blackmail” from the business.

“We do not accept another blackmail from the business sector that profited during the pandemic; which has historically profited from government decisions,” said the head of the National Council of Organized Workers (Conato).

Gil reminded that 2019 was the lowest wage correction in history, since the minimum wage was revised, and that such a situation was repeated in 2021, and sectors that worked during the pandemic, such as the port, production, were excluded. food and industry.

“The working population must recover its purchasing power to be able to cover basic needs,” he said.

The last increase in the minimum wage was between 1.5% and 13%, but it only benefited smaller economic activities, under the pretext that the rest had not recovered from the economic crisis caused by the covid-19 pandemic.

Activities that did not increase are manufacturing, wholesale and retail trade, sale of sugar cane derivatives, fuel tanks, free zones, Colón free zone, hotels, restaurants, night clubs and bars, transportation, information and communications.

There was also no increase in real estate business, rental and lease, shopping centers, travel agencies, maintenance of green areas, security agencies, professional, scientific and technical activities, administrative activities of educational centers, entertainment and household.

After being appointed, the commission receives information about the reality of salaries and continues with the implementation of technical tours of various parts of the country.

After that, it enters a period of consideration, for which it sets a month of debate and, generally, gives its results on December 15.

If there is no consensus, the Executive Body has the authority to make a decision before the end of the year.