No menu items!

COSTA RICA'S LEADING ENGLISH LANGUAGE NEWSPAPER

HomeTopicsBusinessPrivate sector workers ask for 4.12 percent salary hike

Private sector workers ask for 4.12 percent salary hike

Unions leaders on Monday presented Labor Ministry officials with a request for salary hikes for the private sector, to be applied in the second half of the year.

“Our basic proposal is a wage adjustment of 4.12 percent, corresponding to 3.75 percent of cumulative inflation from the first five months of the year, plus 0.37 percent still pending from previous negotiations,” said Rafael Mora, a leader of the National Association of Public and Private Employees.

The unions’ request is a first step in the process of setting wage increases, which will continue next Monday when representatives of employers will present a counter-proposal.

On June 25, Labor Ministry officials will present the government’s proposal in a meeting with members of unions and employers’ chambers. The three sectors, combined in the National Wages Council, will try to reach an agreement on a final figure.

Mora said unions also would seek to change wage policy so that increases mostly benefit base salaries, or lower ranking workers.

“I hope this administration finally changes wage policies and that a change generates a positive influence on social inequality,” Mora said in a statement.

Labor Minister Víctor Morales last week said officials may change the formula used to calculate wage hikes, which has been in place since October 2011. The current system uses projected inflation for the first half of the year. Officials may instead use real inflation for the same period.

Accumulated inflation through May was 3.75 percent, while the Central Bank estimates first-semester inflation at 1.98 percent.

“If we follow the established formula, the increase would correspond to just 0.31 percent. That increase would be unacceptable not only for workers but for this administration as well,” Morales said.

Private-sector employees, estimated at 1.3 million, received a 3.78 percent salary increase last October.

Trending Now

Amazon Founder Jeff Bezos Lands in Costa Rica With Wife

Jeff Bezos touched down in Costa Rica the other day. The Amazon founder arrived with his wife Lauren Sánchez aboard a private jet at...

Cuba Aid Sailboats Arrive in Havana After Disappearance at Sea

The two sailboats transporting humanitarian aid to Cuba arrived in Havana yesterday after a long journey from Mexico during which they disappeared and were...

Cuba Children’s Heart Hospital Faces Hard Choices as Fuel Crisis Deepens

Doctors at Cuba’s main pediatric cardiac hospital are facing heartbreaking dilemmas as a U.S.-imposed fuel blockade puts even more pressure on the island’s fragile...

Costa Rica Road Death Rate Up to Five Times Higher Than Europe

Costa Rica’s road death rate is running up to five times higher than that of some Western European countries, a gap that road safety...

How Costa Rica Cattle Ponds Support Birds Deer and Other Wildlife

Cattle ranching has been interwoven into the fabric of Guanacaste for centuries. Historically, enormous haciendas employed sabaneros, Tico cowboys, to raise cattle on the...

Costa Rica Appeal Warns Puerto Viejo Pier Could Damage Coral Reef

A new environmental appeal is challenging official approval for the proposed Puerto Viejo Neighborhood Pier in Talamanca, arguing that the project could damage coral...
L. Arias
L. Arias
Reporter | The Tico Times |
Costa Rica Coffee Maker Chorreador
Costa Rica Coffee Maker Chorreador
Costa Rica Travel Insurance
Costa Rica Travel

Latest News from Costa Rica