Costa Rica News, Daily News in Costa Rica by the Tico Times
Oct 24, 2008
 
   
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Costa Rica to raise private sector wages 7%
By Alex Leff
Tico Times Staff | aleff@ticotimes.net

Private sector employees in Costa Rica could see their wages rise 7 percent next year after the National Salary Council approved its biannual adjustment this week.

The council – made up of the country's principal business association, labor leaders and government, with three representatives from each – passed the increase in a 6-3 vote, with labor opposing.

Union leaders last week proposed a 9.08 percent increase, and added on other adjustments that amounted to a 12-to-16 percent total raise, depending on the worker's sector and skill level.

On Monday, the Union of Private Sector Chambers and Associations, which represents 42 private business chambers, made a bid for a 6 percent hike.

The Labor Ministry on Wednesday proposed 7 percent and, during negotiations that followed, drummed up support from the business camp but failed to convince the unions, according to ministry spokesman Geovanny Díaz.

The lowest wages in the private and public sectors are adjusted separately every six months, to keep pace with the rise in cost of living.

Inflation has surged 15.77 percent during the past 12 months, the highest year-over-year increase since 1998, according to the National Statistics and Census Institute.

Negotiations involving public sector salaries are expected in the coming weeks.

 
 
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