QUITO, Dec 27 (Reuters) - Ecuador on Thursday decided to hike the minimum salary for private sector workers by 17.6 percent next year in a move that could fuel more tensions between the leftist government and business groups.
The increase that will set the minimum wage at $200 per month is one of the largest since Ecuador adopted the U.S. dollar as its national currency in 2000 after a crippling economic crisis.
"We have decided ... that starting on Jan. 1 of 2008 the remuneration will be $200," Labor Minister Antonio Gagliardo told reporters in Quito. The government made the decision after business owners and workers failed to reach an agreement.
Ecuador expects to register inflation between 2.7 and 3.2 percent in 2008.
President Rafael Correa, a leftist former economy minister, has vowed to battle the oil-producing country's rich elite and help the poor majority.
He has clashed with business leaders over his proposed legislation to reform the tax law, which could force businesses to pay in advance part of their income tax and hike duties on unproductive lands.
Business trade groups says Correa's plans to boost state control over the economy will erode the Andean country's finances in the long-run.
Friday, December 28, 2007
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Is someone making millions (a few making billions) complaining about general workers making 200 bucks a month???
ReplyDeleteUS welfare recipients sitting on their behinds get more than 200 USD a month!
This world is sooo backwards. Its good to see Carrea and Lula trying their best to reverse some of these problems.
Hey, your blog is a great resource, even though I live here, I still come to browse and see what you got to say! Thanks for the news!
ReplyDeletehttp://pjfurlong.blogspot.com