economy

Wage index bill takes flak

The Cámara de Comercio, Industrias y Agricultura took issue with a bill aimed at adjusting wages to offset inflation.

The wage index bill that seeks to adjust workers' wages to offset inflation’s effect on the basic food basket has not been well received by the Cámara de Comercio, Industrias y Agricultura.

The union claims that the bill would increase labor costs and negatively impact prices of commodities.

Union spokespersons cited a 2006 household survey, which found that the 437,000 Panamanians with jobs earned $213.7 million in monthly wages.

Taking into account the 13.2 percent increase to the cost of essential food products at the close of 2007, the government and private enterprise would have to compensate workers an extra $28 million per month.

Legislator Leandro Ávila, who proposed the bill, said that the initiative was intended to boost workers’ purchasing power. “I know that [the Cámara] disagrees [with the bill], but there only way to make up for the higher costs is by establishing a general increase in wages,” Ävila said.

The bill is being currently being debated by a sub-committee of the Trabajo de la Asamblea Nacional.

In April, the government, private enterprise and workers’ groups reached the consensus to increase the minimum wage by $40 at large enterprises and by $25 at small businesses, a change which aimed to benefit 172,000 workers.

The three groups also agreed to create a tripartite commission that would make recommendations on a general wage increases and review production levels.