Minimum Wage Talks Resume

The minimum wage for workers in urban areas of Honduras is Lps 5,500 per month, while the monthly wage for rural workers is Lps 4,055. Approximately 500,000 workers in the country receive the minimum wage. The current wage rates were set under the administration of President Manuel Zelaya, who raised the minimum wage by 60 percent by decree on December 24, 2008. The rates went into effect in January 2009. Representatives of the business and labor sectors in Honduras have been involved in negotiations during the past month to determine the minimum wage for 2010. The Honduran National Business Council (COHEP), represented by Nelson Bendeck, Cristóbal Sierra, and Rafael Ruiz, have proposed that the rates not be raised at all, arguing that an increase would serve as a disincentive to the creation of new jobs.

Organized labor, represented by Humberto Lara of the General Workers' Confederation (CGT) and José Luis Baquedano and Nora Roque of the United Workers' Confederation (CUTH) have proposed upping the rates by Lps 3,000, so that urban workers would receive Lps 8,500 per month and rural workers Lps 7,055.

A key position developed by negotiators from the business sector is a proposal to re-create the 180,000 jobs lost last year due to the 60 percent wage rise in exchange for maintaining the current wage rates. Another position involves a proposal to scale the minimum wage rates according to the type of labor rather than by urban or rural location. In fact, until 2008, business and labor leaders had negotiated 10 categories for wages that took into account different economic factors, including the number of employees of a business. It was only recently under the Zelaya administration that the minimum wage rates were set based solely on geographic area.

Negotiators last month were presented with studies that present an analysis of the impact of a minimum wage increase on micro, small, and medium businesses, as well as the maquiladora industry. Labor representatives subsequently requested 15 days to consult with the presiding judge regarding data presented by the Finance Ministry, the Central Bank, and the National Institute of Statistics. The request was refused by the representatives of the business sector on the grounds that it was too much time. Negotiators were aiming to conclude an agreement prior to the inauguration of President Porfirio Lobo on January 27.

Talks continued, with labor representatives offering to lower their proposal for a wage increase to Lps 1,784 for all workers. However, labor proposed that the minimum wage for maquila workers be raised to the current Lps 5,500, and then raise it by Lps 1,784. The maquila industry had been exempted from the previous minimum wage increase. Business sector representatives rejected the new proposal, arguing that the 30 percent increase is still excessive. On Tuesday, January 19, labor further reduced its wage increase proposal to Lps 1,650, only to be rejected again by the other side. The talks broke down, and it was decided that the task of setting the new minimum wage for 2010 would be passed on to the new administration.

Today, labor negotiators convened a meeting with the Lobo administration's Secretary of Labor, Felícito Ávila, to begin laying out an agenda for the resumption of talks. Business sector representatives are expected to rejoin the negotiations on Thursday.

(photo courtesy Internet)