Lack of consensus impedes approval of salary increase by CNS
Business sector conditions salary increase to reclassification of companies
Amílcar Nivar
SD. The union representatives walked out of the session of the National Salary Committee (CNS) in which they were discussing a salary increase for non-sectored private employees, a half hour after it began yesterday at the Ministry of Labor. They left because the business representatives maintained their position that the increase in salaries should be done after a reclassification of businesses according to their size.
In this sense the president of the National Confederation of Syndicate Unity (CN US), Rafael Abreu, said that if the unions were to accept the proposal of reclassification of the businesses based on the invested capital which business is suggesting, there would be very few companies with the ability to pay the largest minimum wage, which at the present time is RD $11,292.
If we were to fall in this trap, practically, because based on investment capital there would be almost no company in the rank of the highest minimum wage, because they put the number of workers, the number of investments and in addition they invoice, and we are not in any condition, nor can we control in this country the invoices and the earnings of the companies; not even Internal Taxes has the ability to do this," he said.
Abreu said that the unions have had a lot of patience at the CNS, with which they have met now on four occasions, and that at the beginning and before the first meeting the syndicates had to go to an administrative tribunal, in order to have this tripartite body convened through a judicial order, because it had been more than a year that the unions had been waiting for this convocation.
In the meantime the business sector, represented by Joel Santos, the president of the Dominican Management Confederation (COPARDOM) say that they have a proposal to increase salaries by a percentage that would go above inflation, but they feel that the reclassification of the companies should be done first.
"A salary increase with the law is not the same thing as without the law. We are trying to protect the small, the medium and the micro businesses so they can be able to continue functioning, and at the same time they still have what is necessary to provide a salary increase," he specified.
He indicated that the business community is willing to continue working and find a way out of this situation.
Nevertheless, the union reps said that while management does not stop wanting to discuss the reclassification of the companies within the framework of the CNS, they will not attend this body in order to deal with the salary increase. And, on the other hand, they will take to the streets to protest and demonstrate the strength they have in order to demand their rights.
Santos said that at the present time any company above RD$4 million in invested capital is classified as a large company, which means that 98% of the companies are classified as large, in spite of the fact that there are a great many Mipymes that are suffering from this situation. "This is what we are trying to protect and insure. This is an issue of extreme importance for the Dominican Republic, and we are not giving it the importance or the correct formality," said Santos.
According to the reclassification that the business sector is suggesting, which is backed by Law 488 - 08 regarding the Regulatory Regime of the Mipymes, a micro company is that which has between one and 15 workers and assets of up to RD $3 million, and that generates gross yearly income or invoices of up to RD$6 million, indexed yearly for inflation.
The small company is that which has between 16 and 60 workers and assets of between RD$3 million and RD$12 million and which generates a yearly gross income or invoices of between RD$6 million and RD$40 million. The medium-size company is that which has between 61 and 200 workers and assets of RD$12 million to RD$40 million and which generates a gross yearly income or invoices of between RD$40 million and RD$150 million.
Reclassification of the companies
According to the most recent resolution by the CNS, the large companies that pay a minimum salary of RD $11,292 are classified as those whose installations or stock equals or exceeds RD$4 million. The median size companies that pay a minimum salary of RD$7763, are those with installations or stock of between RD$2 million and RD$4 million, and the small ones which pay RD$6880 are like those companies that do not exceed RD$2 million. With the reclassification that is being requested by the business sectors, the companies that are now classified as large, would become medium, and these at the same time would become small with the salary scales that this would imply.
In this sense the president of the National Confederation of Syndicate Unity (CN US), Rafael Abreu, said that if the unions were to accept the proposal of reclassification of the businesses based on the invested capital which business is suggesting, there would be very few companies with the ability to pay the largest minimum wage, which at the present time is RD $11,292.
If we were to fall in this trap, practically, because based on investment capital there would be almost no company in the rank of the highest minimum wage, because they put the number of workers, the number of investments and in addition they invoice, and we are not in any condition, nor can we control in this country the invoices and the earnings of the companies; not even Internal Taxes has the ability to do this," he said.
Abreu said that the unions have had a lot of patience at the CNS, with which they have met now on four occasions, and that at the beginning and before the first meeting the syndicates had to go to an administrative tribunal, in order to have this tripartite body convened through a judicial order, because it had been more than a year that the unions had been waiting for this convocation.
In the meantime the business sector, represented by Joel Santos, the president of the Dominican Management Confederation (COPARDOM) say that they have a proposal to increase salaries by a percentage that would go above inflation, but they feel that the reclassification of the companies should be done first.
"A salary increase with the law is not the same thing as without the law. We are trying to protect the small, the medium and the micro businesses so they can be able to continue functioning, and at the same time they still have what is necessary to provide a salary increase," he specified.
He indicated that the business community is willing to continue working and find a way out of this situation.
Nevertheless, the union reps said that while management does not stop wanting to discuss the reclassification of the companies within the framework of the CNS, they will not attend this body in order to deal with the salary increase. And, on the other hand, they will take to the streets to protest and demonstrate the strength they have in order to demand their rights.
Santos said that at the present time any company above RD$4 million in invested capital is classified as a large company, which means that 98% of the companies are classified as large, in spite of the fact that there are a great many Mipymes that are suffering from this situation. "This is what we are trying to protect and insure. This is an issue of extreme importance for the Dominican Republic, and we are not giving it the importance or the correct formality," said Santos.
According to the reclassification that the business sector is suggesting, which is backed by Law 488 - 08 regarding the Regulatory Regime of the Mipymes, a micro company is that which has between one and 15 workers and assets of up to RD $3 million, and that generates gross yearly income or invoices of up to RD$6 million, indexed yearly for inflation.
The small company is that which has between 16 and 60 workers and assets of between RD$3 million and RD$12 million and which generates a yearly gross income or invoices of between RD$6 million and RD$40 million. The medium-size company is that which has between 61 and 200 workers and assets of RD$12 million to RD$40 million and which generates a gross yearly income or invoices of between RD$40 million and RD$150 million.
Reclassification of the companies
According to the most recent resolution by the CNS, the large companies that pay a minimum salary of RD $11,292 are classified as those whose installations or stock equals or exceeds RD$4 million. The median size companies that pay a minimum salary of RD$7763, are those with installations or stock of between RD$2 million and RD$4 million, and the small ones which pay RD$6880 are like those companies that do not exceed RD$2 million. With the reclassification that is being requested by the business sectors, the companies that are now classified as large, would become medium, and these at the same time would become small with the salary scales that this would imply.
Amílcar Nivar
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