Photo: The National retrieved

Beyond the political differences between the Maduro government and the private sector, there are some decisions that need to be taken with a minimum consensus. Even more so if the private sector has to pay for them.

The minimum wage increase is one.

The 26° Convention of the International Labour Organization (ILO) demands that governments must consult with representatives of the employers and their guilds on any measure that may affect them, specifically mentioning that employers and workers have the right to participate in the method deciding the minimum wage.

Though minimum wage was set by Presidential Decree for the first time in 1974, it became one of the main populist tools of 21st century socialism. Neither Chávez’s nor Maduro’s governments have consulted, ever, private employers or workers’ unions on a single adjustment.

Chávez adjusted the minimum wage a total of 21 times in 14 years, and Maduro 23 times in less than 6 years. And though they claim the decision is made “to protect the purchasing power of the Venezuelan family,” it’s actually one of the main causes of this hyperinflation: if you send a lot of money to the streets through salaries, but keep fewer goods in markets, the prices automatically increase.

For many years, Fedecámaras (the national federation of employers) has reported on how the government doesn’t check with anyone about minimum wage, and the current situation is particularly critical, with Maduro’s unilateral increase by 5,900%. Today, all of Venezuela’s private sector is evaluating if it’s possible to face this new unconsulted rise.

Because as a private company, you may: (i) try to continue operations paying the new salary; (ii) try to “clean” a little your list of workers; (iii) try to reduce operations, or (iv) find an opportunity to close.

This is, precisely, the reason why the ILO Convention demands the participation of employers in the conversation about the minimum wage, it’s to avoid arbitrary rises that have nothing to do with the economic reality.

For now, we can be sure of one thing: the increasing monetary mass will generate massive inflationary pressures and the already downsized and weakened private sector will have to pay for a bill it wasn’t consulted about.

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23 COMMENTS

  1. Unless the regional governments, in cooperation with the UN (which talks through “high commissioners”, but DOES nothing), are willing to take a stand and actions, nothing will change.
    The good people of Venezuela will have to suffer, unless they leave the country, for a different type of suffering (or stand up for themselves).
    The US, EU, and others are contributing to the support of the Venezuelan refugees, but should take no further direct actions. It is up to the U.N. and the regional powers to do their jobs!

    • While I appreciate the sentiment, Naky doesn’t need your help. Many other Venezuelans, not so fortunate, do, including the many who are fleeing on foot. If you want to help, I would start by contacting NGOs in neighboring countries or hospitals and schools in Venezuela.

      • Not a single dollar going to help hospitals and schools in Venezuela is going to make a penny of difference.

        It’s never going to get there.

        Are you new to what’s going on in this shithole?

      • Thank you for the suggestion. However where and whom I choose to help is something very sacred to me and I must be inspired by someone or thing before I decide to offer my help. That being said, thank God that Naky is so fortunate, thank God she doesn’t need anyones help although I personally believe that everyone could use a little help from time to time and nobody is beyond anyones reach to help no matter how wealthy or powerful they may be. I graciously withdraw my offer to help and will do my very best to not take your comment as the sarcastic bitch slap that it came across as.

        • Ira drinks and then tends to post lunacy and attack others with what boarders on hatred. Canucklehead made a post the other day about Chávez digging up Simón Bolivar and Ira response was to go on an incoherent rant about Canada. It was absolutely crazy talk.

  2. Yes Ira is right. We all wish her a speedy recovery. An announcement that had been run through Google translator was posted on these pages a couple of days ago. It was hard to make out parts of the “translated” version but the essence of the message came through. I hope she is getting good care but with things the way they are in Venezuela right now I have my doubts.

  3. Well said Tom. I also agree with Marc that I would gladly make a donation on go fund me. It would need to be someone who knows he personally. Editors of CC…..can you help?

    • KAK, I was thinking the same thing. I know there are probably numerous Chavistas that read these pages daily. The possibility that one of them could set up a fake Go Fund Me account in order to scam Naky’s fans is very real. I agree with you that CC should take the driver’s seat in setting up such an account.

    • Tom – thanks for linking that. Maybe Cuba can send some of those badly needed condoms to Venezuela to pay for their free oil, instead of “doctors” and “military advisers” …

  4. The condoms in Cuba story reminded me of the old story about Reagan sending a cargo transport plane full of much needed condoms to the Soviet Bloc as an act of goodwill. He sent “XX large” condoms but had them all stamped as “medium” before sending. Lol

  5. Quoting Dale in the Gravediggers of Maracaibo article:

    Hey guys and gals, very concerning news in regards to Naky Soto.
    http://zaperoqueando.blogspot.com/2018/08/un-descanso-ineludible.html

    Google Translate
    A few weeks ago Facebook memories approached me 7 photos that I supported in 2016 the “Touch yourself or you will play” campaign, designed to prevent breast cancer. In February , a touching discovered little ball that caught my alarm and took me to a long process of exploration mastologists, radiologists and oncologists that ended with the diagnosis of cancer.
    I never understood the true concept of being patient until these months. It was a complicated route, but they will have surgery next week and to shed new inmunohistoquimical will determine the rest of the treatment. Fortunately, it is an early diagnosis, which is key to swell the chances of survival and healing.

    If something extraordinary happens, is the tell so be on an audio. For the rest, I leave this country version that I can not narrate until my conditions permit. For me, networking is a wonderful place to set the pace and continue to insist on other versions we want and gestated cane, so I enjoy writing and reading, despite regular issues. I hope this will just be a little while and, if not, find a way to write;)

    Continue, please.

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