El Salvador: Minimum Wage and Populism

Businessmen are complain that the setting of a minimum wage should be discussed between companies and unions in order to avoid its use for populist political purposes.

An article on Elsalvador.com reports that "... A proposal has been made to raise the minimum wage, ignoring the discussion in the commission between companies and unions, it is a populist measure, said representatives of the Chamber of Commerce and Industry of El Salvador (CCIES) yesterday. The union recalled that a process should be followed to analyze the remuneration rates and their impact on the economy. "

The secretary of the ruling party, the Farabundo Martí National Liberation Front (FMLN), said in recent days that the government's intention is to "... raise the minimum wage in all industries."

"... The vice president of the union, Javier Steiner, stated that there is already a process in the minimum wage commission. Every three years, representatives from government, private enterprise and trade unions meet to discuss proposals. The decision to declare a rise, and the way it is applied, should emerge from agreement in committee. 'We can not be irresponsible and just increase it without assessing the impact this could have on businesses and workers themselves.' "

Source: centralamericadata.com