Panama Approves New Minimum Wage

According to the Minister of Labor and Labor Development, Jackeline Muñoz, at the negotiation table, the involved sectors (employers and workers) did not raise unattainable expectations, but put the Panamanian people first. The labor consultant René Quevedo stated that the range approved by the Minimum Wage Commission is financially viable for both sectors (businesses and workers) because it addresses important aspects: first, the economic crisis the country is facing, and second, the needs of citizens. In turn, the representative of Conato (National Council of Organized Workers), Juan Samaniego, indicated that the proposals were based on real indicators, analysis, and labor studies. "Today, the working class, the Panamanian family, feels supported by the labor sector through Conato, which responsibly managed to unify a criterion and call for a solidary position towards another organization that did not want to unify a single proposal," he added. The agreement, which will come into effect next January according to the business sector, will protect the jobs of more than 300,000 Panamanians. However, some sectors oppose this salary increase; the Labor Convergence considers that the $9.50 increase is a "major setback and extinguishes the hope of social justice" for workers. The collective, through a statement, distanced itself from the actions of the National Council of Organized Workers (Conato), denouncing having been excluded from its assembly since October 15. It is expected that in the coming weeks the additional percentage for each region and economic activity agreed upon at the tripartite table on December 10 will be announced; however, the authorities assured that no worker will be below the assigned amount. "The process of discussion and analysis of concrete data served as a basis for the search for social justice within what is financially viable," they pointed out. It was also mentioned that the main beneficiaries of this consensus will be small and medium-sized enterprises (SMEs), which represent more than 83% of active employers in the Social Security System.