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Minimum Wage: Employers Stand Firm on IPC-Based Adjustments
🇵🇾 Paraguay /Economy & Trade

Minimum Wage: Employers Stand Firm on IPC-Based Adjustments

From ABC Color · (1h ago) Spanish

Translated from Spanish, summarized and contextualized by DistantNews.

TLDR

  • Employers' representatives insist that the legal minimum wage adjustment must be based solely on the Consumer Price Index (IPC), as stipulated by current law.
  • They argue that the National Minimum Wage Council (Conasam) lacks the authority to apply other indicators like GDP or basic needs basket without a change in legislation.
  • The employers' sector is open to discussing formula changes but believes such reforms should occur in a broader tripartite negotiation involving the government, employers, and unions.

The Paraguayan employers' sector is firmly standing its ground on the methodology for adjusting the minimum wage, insisting that the Consumer Price Index (IPC) remains the sole legal parameter. Enrique Vidal, representing employers at the National Minimum Wage Council (Conasam), reiterated that current legislation dictates adherence to the IPC and that Conasam cannot unilaterally adopt other indicators, such as Gross Domestic Product (GDP) or the cost of a basic needs basket, as requested by labor unions.

Nosotros tenemos que ceñirnos a lo que dice la ley. La ley nos dice qué tenemos que hacer, cómo tenemos que hacer y cómo regirnos. Nos dice que nos guiemos por el IPC. Mientras la ley no se cambie, nosotros no podemos salir de ella

— Enrique VidalStating the legal obligation to use the IPC for minimum wage adjustments.

Vidal emphasized that while the employers' sector is not opposed to debating potential changes to the wage adjustment formula, such discussions must transcend the confines of Conasam. He proposed that any reform of the legal parameters should be a product of consensus reached in the tripartite negotiation table, which includes government, business, and labor representatives. This stance highlights a fundamental disagreement on how the minimum wage should reflect economic realities, with employers prioritizing legal adherence and unions advocating for a broader scope that includes economic growth and living costs.

Es un estudio que lleva tiempo, no se puede hacer de la noche a la mañana

— Enrique VidalOn the complexity and time required to change wage adjustment parameters.

Furthermore, Vidal pointed out that the current economic climate, marked by a 6% GDP growth last year, does not warrant urgent or drastic changes to the minimum wage adjustment process. He noted that the legal framework typically involves Conasam meeting in late May or early June to determine the adjustment based on inflation data, a process that has not been disrupted. The employers' position, therefore, is one of caution and adherence to established legal procedures, suggesting that any significant shift in policy requires thorough study and broad agreement rather than immediate, ad-hoc adjustments driven by union demands.

Normalmente, Conasan se reunía en los últimos días de mayo y después los primeros días de junio para pasarle a la ministra y que la ministra se lo pase al Poder Ejecutivo; ese es el procedimiento. Yo recuerdo que el salario mínimo se tocaba una vez que se tenga una inflación del 10 por ciento (…) no hay ninguna inflación galopante ni nada por el estilo, al contrario. Y tenemos un crecimiento positivo

— Enrique VidalDescribing the usual process and current economic conditions regarding minimum wage adjustments.
DistantNews Editorial

Originally published by ABC Color in Spanish. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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