Conep: A minimum wage of $1,000 is irresponsible and populist

In limbo new minimum wage which was to enter into force next January 2024 in the Republic of Panama.

After months of negotiations, the demands of the labor sector, the turbulent social environment and the expectations of the business sector have deepened the distance between the two sides, increasing uncertainty among the rest of the population.

last wednesday, Convergence Union (CS) they announced that the representatives of the private company stood up from Minimum wage table, while the latter demanded that the unions represented at the table adhere to the schedule established for negotiations.

He National Council of Private Entrepreneurship (Conep) This required clearing the negotiations of political positions and purely ideological interests.

The business sector described it as irresponsible and populist to talk about Mr minimum wage of $1,000.00 per monthwhich they claim would create unemployment and seriously affect the production matrix of the country.

“Unfortunately, our colleague interpreted that this audit has characteristics that could bring him a job in the midst of a complex situation in the country, and he makes proposals that have no basis, knowing that they would further complicate the creation and preservation of jobs,” warned Conep.

Conep also pointed to the alleged intentions of the labor sector to change the schedule that everyone approved, which implies that the Commission finishes its evaluations in December, with the unacceptable measure of continuing the discussion in 2024, with the motivation that the Decision is made within the framework of the election year and has political overtones.

However, the organized unions defended their position and strongly responded to the businessman’s approach.

National Confederation of Independent Trade Union Unity (Conusi) and National Council of Organized Workers (Conato) They accused the business sector of wanting to exaggerate the effects of the anti-mining protests in November by comparing them to the crisis caused by COVID-19.

Businessmen are not interested in dialogue, but in imposing their criteria without discussion and without arguments, which is why they sabotaged the second phase of the dialogue of the Penonomé single table, Convergencia Sindical said. said labor organizations.

They add that for businessmen “There are never conditions for salary increases” despite more than 20 years of sustainable economic growth in our country.

It’s recent Ministry of Labor and Labor Development (Mitradel) submitted for the consideration of the labor unions a proposal for the preparation of a study to measure the effects caused by more than 30 days of road closures in different economic sectors in the country.

Representatives of the labor sector believe that the loss of workers’ purchasing power, as a result of the ridiculous adjustment in 2019 and the zero adjustment in 2021, are the main causes of the social unrest that was expressed in the protests in July 2022 and November 2023.

The Ministry of Labor must convene the sessions of the Commission and finish presenting proposals and not allow sabotage by businessmen, they claim.

He Executive Decree on the Minimum Wage Governing Panama considers 53 minimum wage rates, 73 economic activities; (36 with national salary); 20 occupations (19 with national salary).

Currently the country has 81 districts and they are considered 2 regions: Region 1 consists of 40 districts and in Region 2 the rest of the districts, details Mitradel.