At present, Venezuelan companies struggle day by day to remain firm in a changing market, full of uncertainty and numerous problems, among which stand out the absence of supplies, the scarce granting of foreign currency for the importation of raw materials and the constant economic measures taken by the government in power for several years.
In view of this, the national government, with the purpose of protecting the equitable income of the workers, has implemented a series of economic measures that have not served to stop the galloping situation, such as the increase of the minimum wage.
However, the situation is still too serious, inflation is among the highest in the world, coupled with a double digit fiscal deficit, for several consecutive years, and a 90% drop in oil prices. Added to this is the highest capital flight in the world and the devaluation of the purchasing power due to having salaries in bolivars, which is the national currency, and payments in dollars.
It is true that the increase in the minimum wage is a factor that benefits workers to a certain extent, but in many occasions it affects businessmen by increasing labor liabilities, increasing costs, decreasing profits and economic benefits, causing uncertainty and greater commitments to be fulfilled.
Although the minimum wage is considered a mechanism of social and economic protection for the most vulnerable workers, being an instrument for income protection with the intention of reducing poverty and social inequality, it causes controversy when it is used as a strategy to dissipate inflation, without foreseeing the repercussions of the wage increase in companies.
To conclude we can affirm that the increase in the minimum wage causes controversy both from a political, technical and economic point of view, since it is considered a distortion that leads companies to comply with labor benefits. However, such statements may vary according to the country where the wage increase is generated, since economic distortions may vary from nation to nation and from company to company.
The implications of economic measures on organizations of wage incr... | Ecency
