Businessmen and unions met today to reach an agreement and arrange an increase. This was not possible with the 2024 minimum wage. Like this, The government decided to increase by decree It will be 12.07 percent.
Thus, the salary will increase from the current 1.1 million pesos to 1.3 million pesos by 2024. In addition, transportation assistance will increase by 15 percent to 162 thousand pesos.
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Following the failure to reach an agreement between the parties, Fabio Arias, president of the Unitary Workers’ Center (CUT), said: Business interests have taken precedence in maintaining the privileges they have enjoyed for over 30 years under neoliberal and pro-business governments.S.
“It’s worth noting that businessmen never make offers at the negotiating table,” he said.
Although labor confederations initially demanded an 18 percent increase, they later reduced their offer to 18 percent. 12 percent.
(See: LIVE | Minimum wage 2024: What is known about next year’s increase?)
This decision was not liked by all union members. Diógenes Orjuela, former president of CUT, He opposed such a figure and said he was complying with Palace orders to reduce his request.
“Some union leaders have shamelessly declared themselves members of the government,” he wrote in a column.
Businessmen, on the other hand, never announced an increase figure to the public. Again, Yesterday, in the midst of bilateral talks, they assured that they would reach 11.5 percent. This is slightly higher than what they think is optimal for the economy. However, this figure was not accepted by the table.
“Unfortunately the arguments The fight against inflation, high interest rates and unemployment were not welcomed by other members of the Labor and Wage Policies Coordination Commission. We express our concerns about the consequences of the agreed increase in terms of economic recovery and inflation, which could affect Colombian households, unions such as Andi, Fenalco, Sac or Acopi said in a joint statement.
In addition, businessmen said that it was essential to continue the downward trend in inflation, which reached 10.15 percent annually as of November.
Likewise, the revival of the economy, which is going through a very strong slowdown, should be encouraged; According to the figures presented by Dane, there is a contraction of 0.3 percent in GDP in the third quarter of 2023 and -0.4 percent in October. According to Republic Bank, the GDP growth forecast for the whole of 2023 is only 1.2 percent.
“The increase goes in the opposite direction of what the country needs for its economic revival. It will increase informality and
creates official work. “This will prevent the Bank of the Republic from lowering interest rates faster,” said Fenalco president Jaime Alberto Cabal.
In this second year of the government of President Gustavo Petro, negotiations have been further delayed due to the economic situation of the country and the fear of businessmen not to raise the minimum disproportionately so as not to affect employment and the viability of companies.
And this The economy has already fallen by 0.3 percent in the third quarter of 2023. In addition, pressure continues due to inflation, which is still running at double-digit levels (closing at an annual rate of 10.15 percent in November) and has been negatively affecting household consumption for months.
Likewise, the seasonally adjusted unemployment rate is also increasing and remains high despite the Central Bank reducing interest rates from 13.25 percent to 13 percent.
It should also not be forgotten that the process started in Congress to discuss labor reform, which, among other changes in the project, will put more pressure on employers, as they will have to start paying more for overtime and night wages.
Source: Exame
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