Trade union leaders visited President Hip?lito Mej?a at the National Palace yesterday. They left the meeting with a promise from the President to study the possibility of raising public employees? salaries as of October this year. The President will also consider a proposal to remove income tax on monthly salaries of less than RD$15,000. Labor Minister Milton Ray Guevara also attended the meeting, at which the President ordered the immediate reinstatement of two union activists dismissed from their posts at the Ministry of Health. As the union representatives emerged from the meeting, they praised the President?s ?receptive attitude? and expressed optimism that the government would adopt their proposals. They pointed out that since the last salary increase in 2003, the purchasing power of salaries has been reduced by more than 50% as a result of the peso?s devaluation. The union leaders pleaded that the IMF agreement should include ?transparent and effective measures to ensure that social compensation is actually given to those who really need it.? Also discussed was the need for more public housing, price controls on basic items and the high cost of electricity.
This comes at a time when the government is under heavy pressure to reduce public expenditure.