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

Cities in Honduras and Guatemala ban Therian Meetups

At least eight cities in Honduras and Guatemala have announced over the past week that they are banning gatherings of so called “therians,” a...

US Israel Iran War Spreads as Hezbollah Enters Fighting and UK Base in Cyprus Hit

The war launched by the United States and Israel against Iran spread across the Middle East and beyond on Monday with Lebanon's Hezbollah entering...

Costa Rica Turns Sargassum Threat into Resource Opportunity

The massive influx of sargassum along Costa Rica's Caribbean coast has sparked fresh concerns over its effects on local ecosystems, fishing communities, and tourism....

INCOFER Weighs Monorail Against Tunnel for Direct Link from Airport to Electric Train

Officials from the Instituto Costarricense de Ferrocarriles (INCOFER) are carrying out a feasibility study on how to link the Juan Santamaría International Airport directly...

Aryna Sabalenka Engaged to Georgios Frangulis Before Indian Wells

Aryna Sabalenka, the top-ranked player in women's tennis, shared news of her engagement to Brazilian businessman Georgios Frangulis on Tuesday, just before the start...

Nosara Landowners Build Costa Rica’s First Voluntary Biological Corridor

Private landowners in Nosara have begun to register ecological easements that form the country’s first biological corridor created solely through voluntary conservation agreements. The...
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