The salary negotiation and reality | La negociación salarial y la realidad

Editorial, El Deber:

The Bolivian Labor Confederation and the Government are in full negotiation over salary increases. The labor union is asking for an eight percent increase in the basic salary and a seven percent increase in the national minimum wage. This aspiration is completely detached from reality, reflecting a trend towards tightening belts in households rather than the stability touted in government speeches. Moreover, it far exceeds the inflation reported by the Ministry of Planning and Development, which stands at 2.12%.

In Bolivia, there are two perspectives. On one hand, there’s that of the average citizen who has witnessed the progressive deterioration of job quality. With each increase, labor costs rise for employers, leading them to resort to hiring personnel under external contracts or simply reducing their workforce.

On the other hand, there are the unions, filled with long-serving members who benefit from the salary increases they themselves negotiate, despite not working like the workers they represent.

Thirdly, there’s the State at various government levels, where there are at least half a million public employees who receive the corresponding salary increases. Many of these positions are obtained through political connections.

Since the beginning of the Movement for Socialism’s administration, salary negotiations have been conducted between the national government and the Bolivian Labor Confederation, leaving private employers aside. So far, the latter have had no choice but to comply with the decisions made by the former two, but with unfortunate outcomes for the labor sector.

In the reality faced by ordinary citizens, there has been a decrease of at least 30 percent in purchasing power, especially noticeable in neighborhood stores. According to a report published today by the Dinero supplement of EL DEBER, Smart Data indicates that people are now buying what they need daily instead of making larger purchases that would last longer. This is compounded by price increases resulting from a shortage of dollars and the parallel value of the currency.

Official figures show that unemployment is below four percent, but they do not specify if these are quality jobs with full benefits or if they are informal and occasional employment. According to figures provided by private employers and economists, informality accounts for more than 70% of the economy, meaning many workers, and consequently their families, lack social security, retirement contributions, etc.

In this context, it’s not coherent to negotiate salary increases based on leaders who don’t work, earn much more than their constituents, and are exempt from the risk of losing their jobs due to their union benefits. Instead, they exacerbate the crisis in companies and fail to take responsibility after these companies close or when thousands of Bolivians lose their jobs.

It is hoped that sanity will prevail and that the current reality of the country will be taken into account. One cannot navigate based on a distorted view of reality.

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