business

Chamber rejects call for wage hike

José Ramón Varela, president of the Cámara de Comercio, Industrias y Agricultura de Panama, said that businesses can't be expected to give higher wages to employees without getting something in return.

He was responding to suggestions by President Martín Torrijos that the private sector needs to respond to rising inflation rates.

"The government is asking us to give bonuses to workers, but without getting anything in return," Varela said. The chamber president said that the government should look at giving tax breaks to businesses in order to help them increase wages.

"But even with that help, it will be difficult for small- and medium-size businesses to increase wages," Varela said.

The chamber also wants the government to consider making changes to the labor code to cut down on absenteeism and low productivity.

"We must all work to make the system more efficient," Varela said.

The government has been struggling to contain rising prices, especially in the basic basket of goods. These prices have been increasing dramatically over the past few months, dwarfing the recent modest increase in minimum wage.

Varela suggested that the government offer tax breaks to companies that add employees as a way to combat unemployment.