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Open Minimum Wage Debate 2020, Propose Increase to 30%





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Business organizations, lawmakers and specialists have opened the discussion on raising the minimum wage to be set for next year, including proposals 30% increase on currently paid 102.68 pesos. "Let the discussion open about how wage recovery should take place," said National Commission on Minimum Wages (Konasami) chairman Andres Penjaloza Mendez.

Proposals that were published independently, require an increase of 27 to 30%, that is to say nearly 3o extra daily pesos, as is the proposal of the Universidad Ibero-American Puebla Salary Observatory, a decision that would represent "a solid starting point for the wage recovery in the coming years," said Péloza Mendez.

In the document, the Observatory states that in order to achieve that the family is in or above the poverty line, it implies a minimum wage between 350 and 400 current pesos. "Reaching the levels of well-being established by the Constitution would mean 550 and 600 pesos a day," he adds.

It should be remembered that the minimum wage in the United States is $ 7.25; that is, 145 pesos per hour, 1,160 pesos per day.

According to specialists, for next year there is consensus on the need to significantly increase the minimum wage above inflation, and it is proposed to exceed 120 pesos by 2020.

In turn, the Confederation of Employers of the Republic of Mexico (Coparmeks) proposed a 2020 wage increase ranging from 117.72 to 127.76 pesos, considering it the basis for implementing a new wage culture in the country.

Pedro Chase, the leader of the trade union of the Autonomous Confederation of Workers and Employees of Mexico (KATEM), spoke because the minimum wage is set at 132 pesos"Given inflation and the Independent Collection Rate (MIR) ranging between 20 and 22 pesos, so Coparmeks must reconsider the proposal of 127 pesos."

Recognize changes in business culture

After stressing that it is customary in November to position unions, social organizations, businessmen, academics in terms of wage increases in the country, Penaloza Mendez explained that wage recovery is also a matter of change in business culture and because it is necessary to encourage spending. , it is important to open the debate.

Penaloza Mendez said he "left the way wages were set" that several people or interest groups define the minimum wage, when they affect the rest of the wage, it's over. Now the debate is public. "

Konasami's president said the government's pay policy is "aimed at a gradual, responsible and consensual recovery of purchasing power".

He also noted that wage behavior this year has had positive results, which are even reflected in the contract salaries and salaries of IMSS contributions, "not at the same rate, but there is a clear trend in all salaries for improvement".

Data from the September IMSS report that the basic contribution salary registered a nominal annual increase of over 6%.

Pealoza Menez said that today there is a change in the decisions that companies make and this has to do with the modern times.

Above, after 100 companies have pledged to pay, by December 1, two minimum wages (6,500 pesos) of workers integrated into their workforce.

In the moment The minimum wage is 102.68 in most of the country; while at the Northern border it is 176.72 pesos. Various proposals are expected to be presented during November and will be in December when Konasami, comprised of employers, workers and the government, will announce the minimum setting.

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