Labor Minister José Ramón Fadul now says that it is urgent to change the classification of companies in order to comply with Law 488-08 that dates back to 2008 and regulates small business. The government has failed to prepare the rulings that would serve to implement that law. Now, a new bill in Congress also focuses on the changing of categories of companies. The scales for increase in minimum salaries would apply differently to the business categories.
As reported in Diario Libre, the minister said that “the law is the law.” Employer representatives had argued for the reclassification when the National Salaries Committee met. But this was downplayed by the representatives of the Ministry of Labor and the labor unions and instead a 20% minimum wage increase across the board was ordered in Resolution 5/2017. This increase, however, was challenged legally by employers.
In response to this challenge, Labor Minister Fadul says that new meetings are being held to discuss the change of categories of companies. He said that the ministry is working quickly to address the classification issue. As reported in Diario Libre, the ministry predicts that in less than 10 days, the matter will be resolved.
Fadul has assured the labor and business sectors that there will not be difficulties in implementing the new classification once the categories are decided upon.
“Some have argued that sales volume should determine the category of the companies, but those are topics that are under discussion. We all have the will to reach an agreement on the reclassification as soon as possible because the goal is to create jobs not to erect barriers to growth that lead to with less jobs being created,” he said.
Fadul had just met with Circe Almánzar, executive vice president of the Association of Industries of the Dominican Republic (AIRD); Fermín Acosta, president of the Dominican Bosses Confederation (Copardom); Ignacio Mendez, deputy minister for Promotion of Micro, Small Business and Medium-sized Enterprises at the Ministry of Industry, Commerce and Small Business (MICM); Jacobo Ramos, resident of the National Confederation of Dominican Workers (CNTD); Gabriel del Río, president of the Classist Autonomous Union Confederation (CASC), among others representatives of business and labor entities.
As reported in Diario Libre, Gabriel del Río of CASC said an agreement has not yet been reached, but proposals are still being actively reviewed and evaluated. He insisted that the 20% minimum salary increase is not negotiable.
Meanwhile, the president of Copardom, Fermín Acosta, reiterated that what businesses expect the law be implemented.
Read more in Spanish:
Diario Libre
DGII
26 April 2017
