No menu items!

COSTA RICA'S LEADING ENGLISH LANGUAGE NEWSPAPER

HomeTopicsBusinessWorkers' unions to demonstrate against raise in Social Security rate

Workers’ unions to demonstrate against raise in Social Security rate

Workers’ unions will demonstrate next Monday in downtown San José to protest against the 1 percent increase in the amount deducted from salaries by Costa Rica’s Social Security System, or Caja. The change will take effect starting next month.

Members and leaders of the National Association of Public and Private Employees (ANEP), the country’s largest union, will gather at 7 a.m. in front of the Caja to demand that the institution’s board reverse its decision to raise the amount of the deduction to 10.16 percent.

Those funds are used to finance the Caja’s IVM, the country’s primary pension system.

The agency approved the increase in January, seeking to collect an additional ₡100 billion (some $173 million) per year. Caja Executive President María del Rocío Sáenz explained at the time that the extra resources were essential to guaranteeing the IVM’s sustainability.

Demonstration call

The Secretary General of ANEP, Albino Vargas, called on “workers’ unions members, public and private-sector workers and citizens in general to join the protest.”

Unions leaders hope to block vehicle passage along the capital’s Second Avenue, in front of Caja’s main building, to capture officials’ attention.

“We want them to listen to us and understand that citizens repudiate their actions,” Vargas said at a news conference Tuesday morning.

The union leader said the demonstration also aims to protest high pensions for a small group of bureaucrats. Among others, he referred to the Supreme Court President, Justice Zarella Villanueva, who retired last Friday and will receive a monthly pension of some ₡9.8 million ($17,000).

Vargas also said that if Caja officials refuse to address workers’ requests, they will return to the streets in a new demonstration and national strike on May 29.

Study

The Caja’s Board of Directors based their decision to raise the monthly salary deduction on results of a study conducted by experts from the University of Costa Rica’s School of Mathematics.

The results of the study, disclosed in December, recommended increasing workers’ monthly deduction to avoid bankruptcy of the IVM system, among other measures. It also recommended raising workers’ retirement age from 65 to 70.

The decision sparked general rejection from unions and even from President Luis Guillermo Solís. Casa Presidencial in January requested that the Caja Board suspend the increase until other measures could be evaluated and negotiated.

The Caja, however, as an autonomous agency, rejected the suggestion, as it is entitled to make its decisions without consulting the Executive Branch.

See a video of the unions’ leaders press conference:

https://www.facebook.com/AnepSindicato/videos/vb.249828068443074/1347121612047042/

Trending Now

Costa Rica Faces Water Rationing and Wildfire Risk as El Niño Deepens

A strong El Niño has taken hold over Costa Rica and will keep much of the country drier and hotter than normal through the...

Brandon Nakashima Wins First UTS Tournament in South America

Brandon Nakashima claimed the title at the Ultimate Tennis Showdown’s first tournament in South America, defeating 17-year-old Brazilian Guto Miguel in a tightly contested...

Costa Rica Bridge to Manuel Antonio Faces “Imminent Failure” Warning

A bridge on the main car route toward one of Costa Rica's most-visited places has been flagged as at risk of collapse, according to...

Daniel Ortega Says Nicaragua Will Not Hold Elections Again

Nicaraguan President Daniel Ortega, who has been in power for nearly two decades, ruled out on Sunday any possibility of future elections in the...

Mexico Earthquake Triggers Tsunami Alert with Little Risk to Costa Rica

A magnitude 7.3 earthquake struck off the Pacific coast of southern Mexico this morning, setting off a tsunami alert for parts of Mexico and...

Netflix Documentary Revisits Kaitlin Armstrong’s Capture in Costa Rica

A Netflix true-crime documentary is bringing renewed attention to the case of an American murder suspect who hid in Costa Rica before investigators used...

US Airlines Can Hide Bag Fees Again on Costa Rica Routes

The next time you search for a flight to San José or Liberia on a US airline, you'll see a base fare and not...

Argentina’s Cerundolo Repeats Ruud Upset at Swiss Open

Juan Manuel Cerundolo has found an opponent and a setting that bring out his most stubborn tennis. For the second consecutive year, the Argentine...

Costa Rica’s Reopens Highway After Landslide Closure

Route 32 reopened Friday afternoon after falling debris blocked the highway through Braulio Carrillo National Park for more than six hours, disrupting travel between...
L. Arias
L. Arias
Reporter | The Tico Times |
🌴 The Weekly Pura Vida

Costa Rica, Once a Week

The week's top stories, weather & insider tips — delivered every Sunday. One email, zero clutter.

🔒 Free. No spam. Unsubscribe anytime.

Loading…

Latest News from Costa Rica

Costa Rica Coffee Maker Chorreador
Costa Rica Car Rentals
Costa Rica Travel Insurance
Costa Rica Travel