The Workers’ Council headed by the new minister is discussing the basic salary for 2024 and last-minute ministerial agreements

This Friday, November 24 morning, representatives of the employer sector, workers and the new Minister of Labor Ivonne Núñez met at the National Council for Work and Wages in a meeting that had two axes. First, the definition of a single basic salary that will be valid until 2024 and, second, the request of workers’ representatives to abolish labor agreements,

These latest agreements were signed by the now former Minister of Labor, Patricio Donoso, a few hours after leaving office.

At around 10:15 am, representatives of employers entered the premises of the Ministry of Labor led by Francisco Chiriboga from the Union of Agricultural Chambers, who announced that he would make a statement at the end of the meeting.

A few minutes later, both Mesías Tatamuez, president of Cedocut; Marcela Arellano of Ceoslo and Cristóbal Buendía, state attorney of the Federation of Public and Private Workers of Ecuador, agreed that their sector’s proposal is to raise the single basic wage to $550, about $100 more than the current wage. Buendía said that this increase is now the mandate of the people, since Ecuadorians voted for the government of Daniel Noboa, who offered this very increase in his election campaign.

However, President Noboa’s statements were more to the effect that he would not see the salary increase to $500 sustainable. For the current president, the problem is not an increase in salary but a decrease in the cost of living.

This meeting is a continuation of the second session of the Labor and Wages Council, which was held on November 17, since the previous session, which was still chaired by Minister Donoso, was interrupted. If no agreement is reached at this point, then the Government itself must determine the salary increase for 2024.

On that topic, Marcela Arellano commented that the $100 increase could be gradual over the course of this year and that it is important at this time to inject liquidity into workers’ pockets to help the economy recover. He also rejected the issuance of several ministerial agreements which he said affect workers’ rights by increasing the working day or continuous working days.

He explained that they were without consultation, since Donoso had to submit those changes to the Labor and Wages Council for consideration. “It’s against tripartism.” He warned that if the said agreement is not canceled immediately, he will go to the Constitutional Court and international bodies.

Meanwhile, Tatamuez said his organization is rejecting the employers’ proposal to keep the raise in line with inflation or $4.12.

In addition, he criticized the now former president Guillermo Lasso for signing eight electricity contracts a few hours before leaving. And that Donoso did the same with ministerial agreements.

For their part, the employers’ representatives expressed the view at previous meetings that the salary must be the product of economic and technical analysis, compliance with regulations and respect for the Council’s institutionality are decisive for decision-making.

Employer representatives said that in accordance with the process established by the Ministerial Agreement no. 023 of February 14, 2020 attended a meeting with the analysis of official figures presented at the previous session by technicians from the Ministry of Economy and Finance, the Central Bank of Ecuador and the National Institute of Statistics and Censuses. That is, the projected inflation for 2024 is 2.07%, the growth forecast is 0.8%.

In this regard, they said the parameters show an increase of $4.12.

For the employer sector, this setting must be the product of a transparent process rooted in the economic and production reality of the country, respecting the institutions of the Council, where public policies that enable the improvement of the quality of employment and the creation of more jobs are discussed.

Employers requested that the following be taken into account: