The employer and employee side will sit down again to negotiate the 2021 minimum wage, Portfolio has learned. The VKF meeting will take place on Wednesday morning after representatives of the employers and employees side have already been holding seven-week talks in recent days on this year’s earnings.
Employers would give a 3% wage increase, while employees would like a 5-6.5% increase. “If the minimum wage were to increase by 6%, many people would not be able to manage it, they would be overwhelmed by labor costs, a lot of companies would go bankrupt,” said a representative of one of the employers’ organizations, who said the uncertainty was high and not over. away from the crisis.
Workers, on the other hand, say that 3% only covers inflation, so there would be no increase in people’s living standards. In addition, minimum wage earners are hit harder than the average person by inflation, which is now mainly reflected in food prices.
From January last year, the minimum wage remained because the parties could not agree at the end of last year. So at the moment, it seems that if the minimum wage does not rise, the purchasing power of the lowest wages will decrease due to inflation. “We can’t allow that,” one employee representative told our paper.
Representatives from both sides put it this way, “an agreement is formed” on the 2021 minimum wage and guaranteed minimum wage. According to the Portfolio, employers and employees have also been negotiating in recent days, who may eventually agree to a 4% minimum wage increase tomorrow, but officially no one has yet moved away from their original position. We know that 4% would also be considered acceptable by the government.
Employers can give higher increases during the year if the government will reduce contributions depending on the economic situation. In this case, the employers still pass it on to the employees. However, it is by no means certain that there will be a budget to reduce contributions during the year. The parties could sit down to negotiate with each other again in the second half of the year if the recovery process from the virus crisis were faster than expected.
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