Monday, May 29, 2023

Discussion of the project begins in the Senate

What happened?

This Monday, the Finance and Labor commissions in the Senate began a review of the project that seeks to raise the minimum wage in installments up to 500,000 pesos for the month of July 2024.

As an example, the two commissions worked together and the session was attended by ministers Janet Jara (Labour), Mario Marcel (Treasury) and Nicolas Grau (Economy).

In this sense, it should be noted that the executive branch insists on the existence of subsidies aimed at SMEs so that the increase in wages does not become a problem for these small companies, if they cannot cover the expenses for this increase. .

This support, according to the government’s own reports, “consists of a fixed scheme of amounts for each period of increase in the minimum wage, which varies according to the size of the company (micro, small and medium). For micro enterprises To provide more coverage and protection”.

The latter responded to criticism from the initiative’s opponents, who accuse smaller companies of being unable to meet the half-million-peso floor.

Discussion in committees

Discussed at the Treasury and Labor commissions, the head of the economy portfolio defended the initiative, pointing out that “the amount of subsidy has improved with the prioritization of resources, depending on the size of the company, size is such an issue”. which had the support of all unions participating in the negotiations (SMEs), regardless of who signed it or not, i.e. large subsidies for micro (companies); slightly less for small ones, and smaller ones for medium ones bit less”.

David Acuña, president of the Central Unitaria de Trabajadores (CUT), supported the idea of ​​strengthening the minimum wage.

“We believe that today, assistance focused on job security is being delivered in a good way. So we believe that we need to strengthen wages, so that workers can count on these $500,000 minimum wages. can be done,” he said.

On the other hand, Juan Pablo Swet, President of the National Multiregional, argued his position against it, detailing the need for a permanent public policy on the matter.

“It should be noted that the increase in the minimum wage, if we consider that it was 350,000 pesos in April last year and the 500,000 pesos that is to come, is an increase of 43% in just two years and our refusal is based on agreements with the government. The signing has been mainly in the amount of subsidies (…) Our position has always been to discuss a permanent public policy, where the state goes with the increase in the minimum wage and SMEs can take charge of what is inflation .

“Santiago is not Chile in terms of unions and there are a large number of SME representatives throughout the country who do not agree with the subsidies given by the government,” he said.

In return, he requested that “this subsidy be reconsidered at a very high, permanent amount (…) and we see what the cost to the state would be.”

According to what was indicated by the President of the Finance Commission, Ricardo Lagos Weber, it is expected that this Tuesday the process will continue to send the project to the Chamber.

Nation World News Desk
Nation World News Desk
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