“There should be no salary increase” | ‘No debe haber incremento salarial’

By ERIKA IBÁÑEZ, La Razon:

“There should be no salary increase”: Private sector warns of possible economic contraction

The president of the Federation of Private Entrepreneurs of La Paz said that a wage increase will lead to more inflation and unemployment. He calls on the Government for a tripartite meeting.

Rolando Kempff from the La Paz Business Sector

The president of the Federation of Private Entrepreneurs of La Paz (FEPLP), Rolando Kempff, rejected on Thursday a possible salary increase, as requested by the Bolivian Workers’ Center (COB), stating that given the country’s economic situation, no wage hike should be approved this year as it could lead to an economic contraction.

The business leader proposed a tripartite meeting with the Government to ensure that, in his view, the voice of the private sector is also heard.

A few days ago, the COB presented its list of demands to the Government for this year, requesting a 15% increase in the national minimum wage and a 20% increase in the basic salary.

“We believe there should be no increase this year; we are in a complicated situation, there is no gasoline, no diesel; and that complicates the country’s situation, not only for businesses but for all citizens,” Kempff said on DTV.

The entrepreneur stressed that the business sector considers the COB’s request too high and rejects it. “The increase could lead to higher inflation and greater unemployment because it is retroactive; it is very complicated,” he added.

Salary Increase

He also stated that the business sector has requested a meeting with the Government and proposes that it be tripartite, including the COB, so that the private sector’s position is heard.

Kempff warned that if the Government grants the labor union’s request, the country risks experiencing an economic contraction, higher inflation, and increased unemployment.

He stated that if there is to be a salary increase, it should be based on the current situation of each company and each region, rather than on excessively high figures.

On Wednesday, the Confederation of Private Entrepreneurs of Bolivia (CEPB) also warned that a potential wage increase would jeopardize the stability of several sectors and requested a meeting with President Luis Arce to present their position.

“Due to the serious situation affecting all business sectors in the country and the risk this issue poses to their stability, it is essential that our proposal is heard before any decision is made,” the statement read.

Previously, the Chamber of Industry, Commerce, Services, and Tourism (Cainco) of Santa Cruz and the National Chamber of Industries had already rejected the COB’s proposal.

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