The President and executive vice-president of the Industrial Association of the Dominican Republic (AIRD) are calling for the review of the costs and effects of the current severance payment policies (cesantias) of workers. Their position is that an important part of this worker’s right is already covered by the Social Security Law and this is a heavy burden on companies.
The executives, Juan Celso Marranzini and Circe Almanzar, recognized that the severance payment is an acquired right of the worker and that the AIRD is not arguing for the elimination of it nor are they using such a threat as a bargaining chip in their efforts to lower costs. They said that costs can be reduced by improving competitiveness.
What the executives do want is a review of the true costs and effects of the separation payments, taking into consideration the fact that an important part of the reason for their existence is compensated by social security contributions made by industries.
The AIRD leaders also recognized the gap between the levels of economic growth in the DR and salaries for workers. They said that the much-discussed reclassification of the different commercial entities has to be the first step for any modification of the minimum salary.
Talking with noted journalist Huchi Lora, they noted that there is also a gap between what workers are earning and what is being reported to the treasury of Social Security. They called for an exchange of information to eliminate this gap.
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El Nacional
20 May 2019