President Juan Manuel Santos emphasised Friday that “a minimum wage that is too high promotes unemployment and encourages informality,” pouring cold water on any hopes Colombians may have had in a significant increase in the minimum wage, El Tiempo reported.
“The goal [of any new wage agreement] should be to maintain the minimum wage’s current purchasing power, keep pace with inflation and if possible increase it by a small percentage on top of this,” Santos said Friday.
Santos instead believes the best approach to determining a new minimum wage is for employers and workers to discuss the issue and reach a compromise; only if the two parties fail to reach such an agreement would the government fix the increase “by decree.”
Choosen excerpts by Job Market Monitor from
via A minimum wage that is too high promotes unemployment: Santos – Colombia news | Colombia Reports.
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