The Ministry of Labor ordered a 14% increase in minimum wage effective June 2013. The decision was reachd after business and labor representatives failed to reach an agreement in the meeting today, 3 July, with at the Ministry of Labor today. Labor representatives demanded a 14-16% minimum wage increase and business representatives continued to cap their offer at 12%.
This was the 13th meeting of the National Salary Committee for reaching an agreement on the minimum wage for the private sector. The government has said it cannot raise wages in the public sector.
“We expect to reach a feasible solution today,” Gonzalez had said going into the meeting. The last proposal from management was for a 12% increase for the next two years, but the representatives of the unions were asking for an increase of 17% for one year or 28% for two years.
Last Friday, Minister of Labor Maritza Hernandez and Jaime Gonzalez, president of the Confederation of Business Owners (Copardom) both had expressed their expectation that today’s meeting would be the last and that they would reach an agreement regarding the minimum wage after seven months of talks.