Fedecamaras, CTV set to meet
today to discuss wage increases
By Aaron W. Finkel
Daily Journal Staff
In an effort to break the
stalemate over workers
salary increases represen-
tatives from the Federation
of , Chambers of Commerce
and the Venezuelan Workers
Confederation (CTV) are
scheduled to meet today with
Labor Minister German
Lairet.
Although this afternoon's
encounter will be the fourth
time the two sides have tried
to reach a solution to the pro-
blem of salary increases, it is
unlikely a definitive agree-
ment will be reached.
The business and workers'
groups remain far apart in
their proposals and while
both want to avoid nasty con-
frontations neither seems
willing to make any bold con-
cessions. "We will not pro-
mote confrontations and we
are ready to listen to any ef-
fort (on the part of the CTV)
but the effort must be beara-
ble," Fedecamaras President
Eddo Polesel said Wednes-
day. . pay to be paid on an annual
The CTV has stuck to its
guns and insisted that an
across the board 30 percent
salary increase that would be
implemented Jan.1, 1990 and
would be included in workers
prestaciones and a 100 per-
cent increase in the minimum
wage is needed to help
workers recover from the ris-
ing costs of basic goods. The
current minimum wage is
Bs.4,000 a month.
While the Federation of
Chambers of Commerce has
acknowledged the need for a
salary increase it has main-
tained the payment of re-
troactive severance pay puts
an immense burden on busi-
ness owners and has con-
sistently rejected all attempts
to include a wage increase in
retroactive severance pay.
Prior to Tuesday, when the
private sector group outlined
a new wage increase pro-
·posal, Fedecamaras officials
had never mentioned specific
DO YOU SEE WHAT I SEE? - Consecomercio President Edgar Romero Nava, left,
and Fedecamaras President Eddo Polesel discuss salary liikes.
percentages for a possible in-
crease in the minimum wage
or for a general increase.
Fedecamaras also has
another proposal on the table
calling for workers severance
basis instead of the current
system where workers are
paid their accumulated
severance pay when they
leave their places of work.
The proposal, which also calls
for the creation of a workers
retirement fund, is being
treated as separate from the
anticipated January salary
increases.
The new proposal, which
was presented by Polesel,
National Trade and Services
Council President Edgar
Romero Nava and National
Industrial Council President
Ernesto Navarro Rwz, calls
for those workers that earn
the current mmimum wage of
Bs.4,000 to receive a monthly
bonus of Bs.1,300 which
would not figure m the com-
putation of severance pay.
The first bonus would be paid
on Jan. 1.
Workers currently earning
more than the minimum
salary but not more than
(DJ photo by Pedro Lara)
Bs.15,000 a month will re- The first bonus would be paid
ceive an increase equal to 22 onJan . 1.
percent of their current During the second quarter,
salary. That increase, one-third of the difference
however, will also be paid in between the increase and the
the form of a bonus that will Bs.1,300 minimum raise
not be included in severance (Bs.700 in this case) would be
pay computations. added to the bonus.
Therefore the same worker
No worker will receive less
than the same Bs.1,300 in- would receive monthly .
bonuses of approximately
crease given to minimum
wage earners. For example Bs.1,533 (Bs.1,300 plus one
third of Bs.700) throughout
those workers earning
salaries under Bs.5,909 a the second quarter.
For the third quarter, two-
month will receive the
monthly bonus of Bs.1,300. thirds of the difference would
be added to the bonus and
Twenty-two percent of
Bs.5,909 is approximately during the fourth quarter the
full difference would be
Bs.1,300.
added to the basic Bs.1,300
If there is a difference increase. Thus, the same
between the minimum possi- worker would receive
ble. increase of Bs.1,300 monthly bonuses of Bs.1,766
(which would be the case for and Bs.2,000 during the third
any worker earmng more and fourth quarters respec-
than Bs.5,909 a month) that . tively. ·
difference will be added to Workers earning more than
the basic Bs.1,300 bonus and Bs.15,000 a month would
be paid over the second, thrird have to negotiate directly
and fourth quarters of each with their employers to agree
year. on a salary increase.
For example, a worker that According to reporters that
was entitled to a Bs.2,000 met with CTV President An-
raise would receive a tonio Rios on Wednesday, the
Bs.1,300 bonus for the three CTV has already rejected the
months of the first quarter. latest Fedecamaras proposal.