The Herrera Industries Association says it will introduce wage adjustment proposals at the tripartite talks this week that bring together businesses, labor and government. The wage discussions have been going on for months with the major stumbling block being the requirement for a payment upon dismissal, called the “cesantia,” the severance package.
Labor sector representatives in the talks are adamant that the severance payment package be preserved in the updates to the Labor Code.
The spokesperson for the Herrera industrial sector, Angelo Viro, has told reporters that the sector he represents will submit its proposal in this week’s meeting. According to Viro, recommendations are based on statistical data.
According to the numbers from the Central Bank of the Dominican Republic, the basic food basket for the lowest economic quintile was above RD$28,000 in January of this year.
Viro argues that oftentimes large wage increases stimulate inflation, and this, in turn, wipes out the wage increases. It is a vicious circle.
He noted that President Luis Abinader had mentioned recently that he felt that a 20% across-the-board increase would be about right for the private sector. The labor unions countered with a demand for 30%.
With regard to the end-of-employment payments (cesantia), Viro stated that the manufacturers are not against the statute, but they do want to adjust the number of years involved in such payments.
The talks will be the first under the newly appointed Minister of Labor Eddy Olivares, a lawyer, former member of the Central Electoral Board (JCE) and professional politician. Olivares has served as spokesperson for former President Hipolito Mejia.
Read more in Spanish:
Listin Diario
Acento
17 February 2025