Unions Asking for 8.8% Salary Increase For Private Sector Workers
It is that time of year again, a time for salary increases. The government increases public sector salaries twice a year and as such unions for private sector employees customarily ask for increases as well.

This year, for the period beginning July 15, the unions are asking for an 8.88% increase for the salaries of private sector employees. The Consejo Nacional de Salarios will be holding hearings on Monday June 12 and Wednesday June 14, and with the presence of the Ministro de Trabajo (Labour Minister), Francisco Morales.

According to Gilberth Brown, of the Sindicato de Trabajadores de Recope, the increase takes into account 5.14% for accumulated inflation during the first six months of this year and 3.7% for expected deflation in the purchasing power of employes, for the balance of the year.

The Consejo Nacional de Salarios has the job of evaluating the impact of inflation on salaries for both small and medium sized businesses and can recommend increases lower or higher that what is being proposed by the unions.

Union leaders argue strongly that the working class is in a critical condition as the minimum salaries do not allow for the basic necessities. A study done last February shows that an employee needs a salary equal to 1.65 times the current salary to meet the price of the basic food basket that includes 154 items.

Edgar Morales, of the ANEP - the strongest union in the country - advocates a better distribution of wealth and an increased production. Morales says that the workers don't benefit from the wealth, quoting that 56% of the country's wealth is in the hands of 12% of the population.

Union leaders estimate that inflation for the year will be 13%, hitting hardest during the second half of the year and will affect greatly the 1.4 million private sector workers, who received only a 6.3% increase last time around.