Is it coherent, wise, under the current sociopolitical crisis, to even consider a salary increase? | ¿Es coherente, sensato, bajo la crisis sociopolítica actual, el pensar siquiera en un incremento salarial?

By Erbol; El Potosi:

Bolivian business leaders take a stance on proposed salary increases

The Confederation of Private Entrepreneurs of Bolivia, through a statement released this Sunday, has expressed its rejection of proposals made by some union leaders regarding a proposed salary increase this year.

In its statement, the confederation firmly rejects the declarations of representatives from certain sectors who are advocating for “exorbitant and unrealistic salary increases, generating unnecessary alarm within the business sector.”

Last week, the executive of the Departmental Workers’ Union of La Paz, Félix Niña, proposed an increase of approximately 20% on the current minimum wage, arguing that it could help recover the purchasing power lost by Bolivian families. They expect the Bolivian Workers’ Central to convene a meeting in April to discuss this year’s wage adjustment.

The business leaders emphasized that the severe economic crisis affecting private companies, especially medium and small businesses, has left them in an extremely vulnerable position. They warned that disproportionate wage hikes would significantly worsen the situation, leading to mass closures, reduced investment, and job insecurity.

They argue that an irrational and indiscriminate salary increase, disconnected from productivity and imposed for political reasons, could trigger inflationary instability and high unemployment, repeating the economic crisis Bolivia faced in 1985.

Additionally, they urge the government to approach this issue with the seriousness, responsibility, and fairness it requires. They demand that, for the first time, the legal mandate be upheld, ensuring that private sector arguments and proposals are heard before any decision is made.

In 2024, the government implemented a 5.85% increase in the national minimum wage, raising it from Bs 2,362.50 to Bs 2,500. As in previous years, any further wage adjustments will depend on a Supreme Decree, which will determine whether a new increase will be applied this year or if the current amount will remain unchanged.

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