Nicaraguan Workers Reject Three Year Salary Freeze
NSCAG News |
on: Thursday, 9 January 2014
Nicaragua’s National Workers’ Federation, the FNT, has rejected a proposal by the Superior Council of Private Business, COSEP, to discuss the minimum wage every three years. The FNT argues that workers are not financially able to accept what amounts to a three year wage freeze.
In accordance with the tripartite agreement between the unions, Government and the private sector, the minimum wage law provides for a wage review twice a year. To date, the tripartite agreement has functioned very well. It has guaranteed that decisions are made based on the highest consensus possible and contributed a great deal towards economic stability and the reduction of poverty. However, the FNT are now refusing to accept the private sector’s proposals, stating that these will represent a huge blow to workers.
During the last three years, wage bargaining has been conducted at the beginning of each year, allowing an increase in the minimum wage in two parts, one in the first half of the year, the other in August. The FNT has stated that annual wage bargaining is established in law, and that this must remain. However, it would be willing to agree to a reform of the minimum wage law which would give workers an increase just once a year, rather than in two parts.
