In the Dominican Republic there do not exist the conditions for a 30% wage increase as proposed by the nation’s unions. According to Circe Almanzar, the executive vice-president of the Dominican Republic Association of Industries (AIRD), a 30% increase would generate a “very tricky situation” for industry and the business sector.
Almanzar says that if there is compliance with the Micro, Small and Medium Enterprise (MSME) Law, companies would be in a better condition to restructure salaries. “Talks have started and we will see what will happen,” she said.
The AIRD has advocated a reclassification of businesses arguing that a micro-business cannot be subject to the same wage scale as a large corporation. She further noted that the minimum wage in the industrial sector in the Dominican Republic is above RD$20,000, but this goes up as commissions are earned. This is unlikely to happen in micro-businesses.
Finally, Almanzar noted that the business sector does not want to remove labor benefits. What it is proposes is a change of model focused on what an employee produces and not how many hours worked.
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Diario Libre
4 March 2019