Wage Clash | Choque salarial

By Erbol:

Wage Demand Questioned

Private sector rejects the wage increase demanded by the COB: “it is unfeasible”

The president of the CNC, Eduardo Olivo.

The National Chamber of Commerce (CNC) and the National Chamber of Industries (CNI) rejected the proposal of the Bolivian Workers’ Central (COB) to increase the base salary by 20%.

“This demand is not only unfeasible from an economic standpoint, but it is also openly contradictory to current regulations,” stated the president of the CNC, Eduardo Olivo.

Olivo recalled that this year a 20% increase in the minimum wage was already implemented—higher than usual adjustments—and was absorbed by businesses, so he considers that further increases should not be discussed.

He also stated that Supreme Decree 5516 establishes that the base salary must be defined through direct negotiation between employers and workers.

On Tuesday, the COB submitted its list of demands to the Government, including a series of economic and labor requests. It also called for the establishment of working groups.

“The COB’s petition is extremely tough because I also believe it has more clauses than the New Testament. It touches absolutely every point and seems like a list of demands from a booming economy, when in reality we are in a highly fragile economy,” Olivo questioned.

For its part, the CNI expressed its rejection of the COB’s request and warned that a new wage increase could trigger inflation, worsen the economic crisis, affect competitiveness, raise country risk, and encourage smuggling.

“Before wage-focused and sectoral measures, Bolivia urgently needs measures for economic reactivation and growth,” the statement reads. ///kmg

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