Salary increases in Bolivia have a long history of strikes, blockades and it is more or less customary to start this predicament every years around October. By the end of the first semester of the new year, the government sets percentages (politically driven or as a result of union’s and social pressure) and pushes private sector to meet those percentages which are most of the time hard to meet, as they have to be competitive.
Households will always want more money for the same type of work, its human nature. It is highly political to keep voters calm, regardless if the State owned industries have to use subsidies to survive, something that private companies don’t have.
Follow articles about this subject as they were published today, links below will take you to the complete note.
Pagina Siete: The president for Confederation of Bolivian Private Entrepreneurs (CEPB), Daniel Sanchez said it is not advisable to increase salaries for 2012, they expect a decision by December this year, when the private sector intends to meet with current Bolivian president. In the last five years, the salary increased by 50% say the private sector. Fabrile workers demand an increase above 10%. Last week the Economics Minister, Luis Arce reported that the salary increase is considered along with the State General Budget for 2012.
http://www.paginasiete.bo/2011-10-27/Economia/Destacados/9Eco00127-10-11-P720111027JUE.aspx
La Razon: The National Chamber of Commerce (CNC) thinks differently as the CEPB. CNC president, Oscar Calle said they agree to pay a salary increase tied to current inflation rate of this year. (Government expects a 6% inflation rate for this year)
http://www.la-razon.com/version.php?ArticleId=140081&EditionId=2697
La Prensa: Private companies announce layoffs due to salary increases. Fabrile workers demand an equal or above salary increases from this year (11%). Minister Arce said it will be difficult to have an increase in salaries due to lack of resources given current fiscal deficit, although it is still under study he added. The president of the CEPB, Sanchez said the entrepreneurs expect that the increases will be “serious and rational;” he also said, if the (global) crisis affect us, it will more likely also impact employment and the companies will have to reduce those personnel that demand salary increases not in accordance with what can be paid. Regarding the rise of food prices, Sanchez said the contraband causes price variations of those products.
As of 13:20 today, PAT TV news reported public teachers are requesting 12% and health workers 15% salary increase. The head of the main workers’ union (COB) said the government should start negotiating now, rather than waiting for blockades, hunger strikes and blockades.
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