To determine the single basic wage (SBU) for 2024, the Ecuadorian Business Committee (CEE) asks to be left in the “hands” of the government of the newly elected president Daniel Noboa if they do not reach an agreement between employers and workers, who will have to meet in the next few weeks to define the salary.

The trade union pointed out that the sector seeks to increase employment and improve the economic position of workers, and therefore they believe that the SPP should be set technically, not politically.

The Minister of the Government, Henry Cucalón, announced last week that, if no agreement is reached between the representatives of workers and employers, who make up the National Council for Work and Wages (CNTS), the outgoing Government will abandon the defined SBU and the proposed increase will be $25, on a salary that is currently worth 450 dollars, that is, the salary for the next year would be 475 dollars.

The Chamber of Commerce of Quito invites representatives of workers and employers to determine the basic salary technically

The demand of the workers is that the SBU should be equal to the price of the vital basket of 550 dollars, while the employers gave priority to the technical positions.

In a statement released this Wednesday, October 25, the CEE indicated that the decision on the basic salary must be made in the CNTS “without interference of any kind”, and in the event that an agreement is not reached, the decision must be left in the hands of the future government, which they urge to respect what is indicated in the Labor Law, which – they state – establishes that the basic salary must be increased to the extent that it amounts to inflation.

The CEE indicated that according to the technical criteria, the SBU must be adjusted with regard to factors such as productivity and economic growth, but that in Ecuador productivity has decreased in recent years and it is estimated that there will be low growth next year, “only 0.8% . “

Likewise, the union called for consideration of the economic situation of “the vast majority of companies” affected by additional costs in terms of safety and preventive measures against the El Niño phenomenon, which could affect the sustainability of existing jobs.

2024 pay rise: Workers propose to match basic pay to vital $550 basket, employers hope calculation is technical

According to the Union, if the national government defines the salary according to political criteria, it will create a greater obstacle to access to formal work, which will harm workers who currently do not have the opportunity to get a quality job.

“The intention to unilaterally increase the SBU is political, without a technical basis. Even more if we remember that other productivity-enhancing measures were promised to finance the increase, which never materialized,” CEE said.