Panama's Minimum Wage Commission Fails to Reach Consensus

This Wednesday, the Minimum Wage Commission must reach a consensus to establish a new pay range for workers starting in January. However, the existence of differing proposals from the unions could be an obstacle to this goal. The Minister of Labor and Labor Development, Jackeline Muñoz, detailed that the business sector, unlike in previous years, is willing to agree on a realistic and consensual wage increase. According to their secretaries general, Ariel Muñoz and Marco Andrade, the proposal from Conusi aims to ensure Panamanians have enough resources to cover their electricity, housing, personal hygiene products, food, and other expenses. The National Confederation of Independent Labor Unity (Conusi) suggests a 20% increase, equalizing economic zones nationwide at $1,956.52, a figure that, in their opinion, will allow citizens to meet all their needs, not just food. On the other hand, the National Council of Organized Workers (Conato) recommends a sectoral increase of 7% ($57) for large companies and 6% ($38) for small businesses, a significant difference that could leave the decision to the Executive Branch. The lack of consensus among unionists has been, according to Juan Antonio Ledezma, a representative of the National Council of Private Enterprise (Conep), one of the main problems faced by the commission every two years, as the labor sector is divided into two, making it impossible to reach agreements in favor of all involved. Nevertheless, they will insist on unifying wage zones so that the entire country has the same level of resources. "We must make a great national effort, we have to look at this with a long-term vision because the country and its companies must be competitive," he said. For his part, Juan Samaniego, vice president of Conato, stated that they will continue to bet on dialogue and consensus in the tripartite table for the benefit of all Panamanians; therefore, their aspirations are consistent with the reality of the business sector. "Unlike other moments when the employer sector says a radical zero, this time it is not so, they are willing to talk," he said. Samaniego recognized that earning $2,000 a month would be "the best," but it would also cause the "destruction" of the country's economy and its inhabitants because whatever the tripartite commission decides will have an impact on their finances. He pointed out that the debate should focus on the minimum range to be paid, understanding that those who earn higher salaries or have collective agreements are outside of this figure. If no agreement is reached, the Executive will establish a new minimum wage that will come into effect from January 16, 2026. In this sense, it was established that SMEs, due to their complexity, would not be subject to the 6% increase.