One of Guillermo Lasso’s pre-election bids to win the presidency was to raise the basic wage from $400 to $500 in his four years in office, so in 2021, as he failed to reach a consensus between workers and employers, his government decided on a $25 increase that was effective from January 2022. The same thing happened the following year, and for January 2023 the base salary was set at $450. Now, before the end of the mandate – shortened by death on the cross – they will be able to define the increase until 2024.
The basic salary that governs today by decree was ordered by the Ministry of Labor on November 30, precisely in this year 2023, for that same day, the National Electoral Council (CNE) planned in its calendar to hand over the credentials to the new president who was elected in the second round of elections that will be held October 15.
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According to election schedulethe current Government will be in office until November 30, 2023, “so that in accordance with the regulations of the National Council for Work and Wages, it could achieve the establishment of a single basic salary for the year 2024”, points out Andrés Madero, dean of the Faculty of Law and Administration of Ecotec University and former Minister of Labour.
And the times give him that. Ministerial agreement MDT-2020-185 establishes the procedure:
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Although among the representatives of employers and workers who make up the Salary Council, there is doubt as to whether the new basic salary will be defined in this or the next government. So far, they have not received any information about this from the Ministry of Labour.
employers
The determination of the salary, which will be effective from January, “is decided in principle at two sessions of the National Council for Work and Wages, more according to the months of October and November. So far, we have not received any notification from the ministry on this topic,” points out Rodrigo Gómez de la Torre, representative of the employer sector.
And he comments that since “President Lasso would leave the presidency in December, which leads to more uncertainty on the subject: leave $25 more or leave the 2024 salary decision for the next government.”
workers
On the other hand, the president of the Confederation of Workers of Ecuador, Édgar Sarango, says that they are still not aware of any criteria related to this issue, although he believes that it is up to the new government to direct the salary proposal.
In any case, let’s wait for them to call us, our proposal will be the same as always, although the current government practically defined an increase of 25 dollars every year, there was practically no discussion about the increase, because the government defined two years”.
In accordance with the provisions of the Labor Law, the single basic wage is determined by consensus in the National Council for Labor and Wages, and if there is no such agreement between the employer and the employee, the wage is determined by the Minister of Labor. Job. And in this, former minister Madera emphasizes that “this determination of wages cannot be carried out in an electoral or political sense, it undoubtedly needs technical support that enables the preservation of the balance between the country’s production factors and that enables the harmonious development of the labor sector”.
Pending decisions
The government – which shortened his mandate by 18 months by applying the death of the cross – leaves certain decisions to the new president, for example renegotiating contracts with telephone companies and carrying out the dismantling of the oil industry in ITT. block after the results of a popular consultation, in which the majority of the population at the national level spoke in favor of leaving the Yasuní crude oil underground.
Considering what can be expected in relation to the wage fixation that will be in effect in 2024. , Madero comments: “What all Ecuadorians hope for is that the current government, and any government in general, will act responsibly and technically support all their actions; especially on such delicate matters as this determination of wages, which have great consequences for the economy of the country. I am convinced that every decision made in this regard will protect the rights of workers and will be implemented with the aim of guaranteeing and promoting the much-needed sources of employment in our country”.
What do the candidates think?
Presidential finalist Daniel Noboa does not consider it feasible to raise the basic salary to $500 “because the cost of living is rising more than the salary. The problem is not the increase in salaries to infinity, the problem is that costs are rising faster than the basic salary. This is controlled by lowering the cost of living, with greater competitiveness, in the price of electricity and fuel, which is transformed into a lower price of food. Then the purchasing power increases and you can have greater well-being”. This was stated in an interview for this newspaper.
Candidate Luisa González, who will face Nobo in the second round, has not yet given an interview to this media before the first round or after the August 20 election, so it was not possible to get her opinion on the matter. and other topics.
Questions and answers Elections 2023
Source: Eluniverso
Alia is a professional author and journalist, working at 247 news agency. She writes on various topics from economy news to general interest pieces, providing readers with relevant and informative content. With years of experience, she brings a unique perspective and in-depth analysis to her work.
