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The minimum salary would be lower with the reclassification of businesses

SD. The minimum salary of a great number of companies which today are considered large, would become RD$7763 or RD$6880, instead of RD$11,292, as it is at the present time, if the reclassification of businesses proposed by the business sector is accepted. The proposal was made through the Management Confederation of the Dominican Republic (COPARDOM), as a starting point for a salary increase for the non-sector private employees who receive a minimum wage.

Those minimum salaries, according to the reclassification suggested by the businessmen, which is supported by Law 488 – 08 on the regulation of the Mipymes, would be enacted in these companies for the new employees, but not for those who already have the minimum salary of RD$11,292.

Faced with this panorama, the unions which represent the workers are on the defensive, because they understand that if this reclassification is implemented in the country there will be few companies with the ability to pay the highest minimum wage which is now RD$11,292.

This is because at the present time the big companies are considered to be those that have installations equal to or greater than RD$4 million, and with the reclassification requested by COPARDOM, a company is to be considered large when it has assets of RD$40 million or more.

A company is considered small, according to Law 488 – 08, when it has assets of between RD$3 million and RD$12 million, which means that with this patrimony previously they had to pay the highest minimum wage, and now they would pay the lowest minimum wage, of RD$6880.

At the same time, in medium companies, with the new classification, it would be those which have assets of between RD$12 million and RD$40 million, and could pay a minimum salary of RD$7763 when before they would pay the highest minimum wage with the same amount of assets.

“The companies that they would classify would have a different minimum salary, but this does not mean that these companies are going to lower salaries of their people,” assured the president of COPARDOM, Joel Santos, as a way to justify their demands.

Given the possibility that the companies that classify for a minimum wage, that is less than that which they have now, might fire personnel in order to contract employees with the new and lower minimum wage, the representative of the business sector said that this would be very difficult because one of the principal problems of the companies is to be able to comply with the cost of the severance pay (‘cesantía’).

They will convene the CNS in two weeks

The president of the National Committee on Salaries (CNS), Felix Hidalgo, stated that this entity is going to convene again within two weeks, and bring the parties together in order to seek a consensus with regard to a salary increase for the non-sector private employees. He said that the issue of reclassification of the companies might last a long time, and that the best thing to do would be that this issue is discussed after the salary increase. In this sense, he said that first they should finish with the increase, because the employees are waiting for it.

Source: DiarioLibre

April 24, 2015

Category: DR News |

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