Honduras News Archives: minimum wage

Formula for Minimum Wage Requested

The authorities of the National Association of Industrialists (Andi -Asociación Nacional de Industriales) will attend a meeting of the Social and Economic Council (CES – Consejo Económico y Social) to defend the position that the new minimum wage should be set by a formula produced by a consultant of the International Labor Organization (Organización Internacional del Trabajo).

The Executive Director of Andi, Fernando García Merino stated, “We have a position that we have maintained for a long time, that the mechanism that we have had for years has not worked, precisely because there has not been an agreement between the parties in the negotiations of the minimum wage.”

According to the representative of Andi, the presidents of Honduras, responsible for setting the minimum wage, have always handled the subject from a political point of view, and not from an economic perspective, “They have hurt the sector…” “…according to ILO data, we have increased the minimum wage by more than one hundred per cent in ten years, and that is not possible…” “…if it is not competitive, it affects the productivity of the country.”

García Merino stressed that employees are being paid almost three times the minimum wage of the industrial sector in Nicaragua, and nearly double that of Guatemala and El Salvador.

Manufacturers point out that they cannot continue with a policy of politics assigning the minimum wage if it is not calculated seriously in a technical manner.

“That is why we are talking about a formula, where we sign an agreement between the Government and trade unionists, which will be respected.”

The industrialists say they do not understand the refusal of the workers in the country to adopt this, as several days ago, they had agreed on a formula that takes into account the rate of inflation, economic growth, and profitability, among other factors.

FNRP, Unionists and Teachers Protest

Labor unions, educational organizations, and the National Front of Popular Resistance, [FNRP] in Honduras met on Thursday at 8 am at the headquarters of the Workers Union of the Beverage Industry (STIBYS), located in Las Brisas, Comayagüela, where they marched to obstruct traffic on the Military Boulevard.

The groups carried out strikes throughout the country in protest against the minimum wage increase and the adoption of the hourly wage act by the National Congress.

In the city of La Ceiba they blocked traffic along the CA-13, and similar protests occurred in Progreso, Yoro, and the Department of Cortés, where they aligned on the roadway that leads to the port.

In San Pedro Sula, members of the Syndicate of Workers of the National Autonomous University of Honduras (SITRAUNAH), held a protest at the school in the Sula Valley.

Minimum Wage Increase Set

Last night, the Honduran government set the salary adjustment for 2010 to a seven percent increase.

The former executive director of the Honduran Council of Private Enterprise (Cohep), Benjamin Bogran, said the new minimum wage increase by the Government was the “right decision.”

According to the employer, with the new salary adjustment, the government is protecting “small and medium businesses. For large companies, the increase represents a significant cost to be undertaking, but as has been demonstrated, these companies are the ones most capable. ”

“Now what both the business sector and labor force needs, is to focus on what we do for the next few years in the country,” he said.

He said that “as of December 1st, we must call for the new minimum wage negotiation, in view of 2011. The private sector’s position is that we should find ways to establish, or make more or less set, the rules, a fixed increase for the next five years.”

In that sense, Bogran said that, “the decision of the Zelaya administration contributed to the loss of more than one and half million jobs in the country, because of the failure to establish protective measures for small and medium enterprises.”

The head of the National Association of Industrialists (ANDI), Adolfo Facussé, said that the announced minimum wage increase “is quite realistic and consistent” with the current situation in the country.

He agreed that “in general, what is happening is a logical consequence of the disaster that occurred in the economy when former President Manuel Zelaya increased wages by 60 percent, while inflation was at an 8 to 10 percent increase, which caused the loss of many jobs.”

That increase, he added, has not been possible for sixty-seven percent of the companies to pay. According Facussé, in the future, Honduras will need to adopt a new law that increases salaries once a year, automatically, and based on inflation.