The intention of the government of Guillermo Lass to apply a wage increase of 25 dollars as in previous years, if there is no agreement between workers and employers, will not be realized because the times for the change of government have been postponed.

“If there is an agreement between the parties, the Government can announce it. If there is no agreement, due to the deadlines – and taking into account the date of the change of command on November 23 – it is unlikely that this Government will appoint him,” Minister Henry Cucalón told this newspaper Friday, November 10.

Thus, Guillermo Lasso’s campaign bid to raise the base salary from $400 to $500 during his term will be left in half, because his term was cut short by the death of the cross and because when the inauguration of his successor was brought forward, he would no longer be able to do so. .they give time. The president ordered an increase of $25 in 2022 and another $25 in 2023, bringing the current single base wage to $450.

The discussion on determining the basic salary for 2024 begins

The National Labor and Wages Council is the body that analyzes and defines the basic salary every year, but when no consensus is reached between its members representing parties, workers and employers, it is the Government that defines the value. which applies from January. The inauguration of the new president was scheduled for the beginning of December, then for November 30, and now it has been confirmed that it will be November 23.

The parties met on the afternoon of Thursday, November 9, to begin an analysis of the amount that will rule in 2024. Union headquarters are proposing an increase of $100 to reach a base amount of $550 – the same as the cost of the vital basket – while business trade unions expect that the institutionality of the Council is respected and that it determines the basic salary in a technical way.

“We must meet within the Council by November 30 to technically evaluate all the information that the Ministry of Finance, INEC and the Central Bank have already presented to us. The economic projections are not very encouraging and we hope that this information will be reflected on both sides so that we can return to the second call,” commented the executive director of the Association of Banana Exporters José Antonio Hidalgo, who is a replacement member of Salaries. Council for part of the employers and points out that this is not a political decision, “it is a decision that has implications for the economy of the country, for the success of employment in the country”.

These are the minimum wages in Latin America

At the first meeting, economic forecasts were published: estimated economic growth of 1.5% at the end of 2023 and 0.8% for 2024, according to data from the Central Bank of Ecuador. And average annual inflation of 2.56% for this year and 2.07% for the next.

The government has indicated that the next meeting of the council will be on Friday 17 November, with a second meeting a week later to agree proposals from both sides. If there is no consensus, the final decision must be made on November 30, by which time President-elect Daniel Noboa will already be in office.