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Wages of misery could spark social upheaval

Santiago.- Dominican labor unions warned Tuesday that the widening gap between the earnings of businesses and the benefits for the working class could soon spark great social upheaval.

The warning comes in a report by the unions CNTD, CASC and CNUS on the most pressing issues over the past year, which notes that the country´s strong economic growth creates “an abysmal distance” between a business sector that accounts for 60% of GDP in earnings and profits, net interest and other income, and a working class that gets just 33% as compensation, while taxes absorb the rest.

The union leaders said the low wages most reveal the maldistribution of wealth, to the point that household income of RD$22,448.74 in September 2015 could meet just 80% of the cost of living, maintaining a constant deficit of 20 % still.

“We warn that this deficit may become more pronounced, if we set off from the newly started year resulted in an increase of the ITEBI tax from 13% to 16% on the very sensitive products of the family staples, such as cooking oil, coffee, chocolate, yogurt, among others,” the unions said.

They called the 14% wage increase inadequate while the absence of increases in salaries and pensions for most public servers contrasts sharply with the low inflation reported by the Central Bank. “This is explained by an elementary reasoning, which states clearly that the inflationary impact is always greater on everyday consumer products.”

Source: DT

Jan 6, 2016

Category: DR News |

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Last updated December 8, 2016 at 12:39 AM
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