The National Business Council (Conep) is forecasting that many companies may close if the government orders a raise in the minimum wage as is being demanded by the labor unions. Rafael Paz, vice president of the business organization that is the country’s largest, warned that an obligatory wage increase would lead to job losses.
The business sector believes that before deciding on a salary increase as called for by labor unions, companies must be helped to improve their competitiveness.
Management and unions continue to argue over a salary increase. Labor sector representative Rafael (Pepe) Abreu says that through a court order they have they are asking the two parties to sit down at the discussion table to review salaries this year after business representatives turned down union requests for new salary talks, as reported in El Nuevo Diario.