Panama Holds Negotiations on New Minimum Wage

On Wednesday, the fourth ordinary session of the National Minimum Wage Commission was held, comprising the worker, employer, and government sectors, with the aim of establishing the country's new wage rates. If the parties fail to reach an agreement, the Executive Branch will be responsible for setting the new minimum wage. Currently, the average minimum wage is $636.80 per month, and modifications depend on factors such as region, company size, and economic activity. 'Today marks the core part of the negotiation: the presentation of concrete proposals for the percentage increase or revision of the minimum wage. This moment is considered crucial, as it will define the path toward a final agreement that will directly impact millions of workers in the country,' stated Muñoz. Additionally, they suggest unifying the 63 minimum wages into one. Maribel Gordon, an economic advisor to Conusi, explained that the proposal is technically substantiated using economic tools to determine the cost of fundamental needs, namely food, clothing, transportation, housing, health, education, and recreation. The Minister of Labor and Labor Development, Jackeline Muñoz, emphasized that the presentations made by specialists from the Federation of Chambers of Commerce, Industry, and Agriculture of the Republic of Panama (Fedecamaras), the Chamber of Commerce, Industry, and Agriculture of Coclé, and the Union of Workers in the Construction Industry of the Republic of Panama (Sintracoapa), during the courtesy period were fundamental in establishing a common framework of understanding of the current economic situation. The National Confederation of Independent Unity (Conusi) proposes a minimum wage of $1,956.52 per month to cover the basic needs of a family. Next Tuesday, December 9, an extraordinary session will be held to reach a transparent and balanced consensus with the aim of achieving an equitable adjustment. Gordon detailed that when comparing these amounts with the current wage measure of $735.40, a 'significant gap' is evident, which leaves many Panamanians in a state of food dissatisfaction and poverty. According to Mitradel, these technical interventions allowed both parties to share diagnoses and evaluations that will serve as the basis for the stage that is now beginning.