2004News

Wage increase controversy

Wage increases will
continue to be debated. The matter was thought to have been settled by way of
Resolution 2-04 issued by the National Salaries Commission. The resolution
called for a 30% across-the-board increase on the minimum wage and a 25%
increase in monthly wages of up
to RD$20,000. These provisions were a result of a pact between business and
labor sector representatives last week.
In a letter to its members, the National Council of Business (CONEP) has now
announced that it will adhere to the recommendations of the National Salaries
Commission, which is only authorized to rule on minimum wage increases. CONEP
has informed its members that the 25%
increase in monthly wages of up to RD$20,000 is a voluntary measure to be taken
according to each company?s capacity. The leading business organization also
says that the increases the companies have accorded their employees prior to the
resolution should also be recognized.
According to a CONEP press release, the 25% increase on wages of up to RD$20,000
is only mandatory for minimum wage earners and those workers in industries not
covered by separate provisions. Thus, free zone, tourism and construction
workers are exempt from the agreed-upon
salary increase.
CONEP is consequently adhering to the limitation that restricts the National
Salaries Commission rulings to minimum wages of non-specific sectors. The pay
hikes will go into effect following the time period specified once the
resolution regarding the increase has been officialized.
As reported in Diario Libre, legislators are still considering legislation that
could instate mandatory increases across the board.
Meanwhile, the government is proposing a 15% wage increase for its own workers
in January, with another 15% in June 2005.