Top official agrees: Dominican Republic’s ‘wages of misery’ must be raised

Santo Domingo.- Labor minister Jose Ramon Fadul on Tuesday said he agrees with a general wageincrease, but did not specify when, how much and under what mechanisms it couldcome about.

He said more than a wage increase, the country needs areadjustment in all sectors, but the source of funding needs to be identified.

He said even president Danilo Medina agrees with a wage hike"and hasn’t been able because of the problem of a tax reform forresources. Everyone knows that wages are poor, not just now, but always."

The official reiterated that the resources must first beidentified to meet the workers’ demand of an increase in wages, which have beenoften described as of “misery,” some as low as RD$6,000 (US$130) per month.

"I believe that wages aren’t enough and if we look atthe indication of the Central Bank I think the household budget is between 28and 31,000 pesos and the non-regularized informal sector the minimum wage oflarge companies is 12,863 pesos … I mean a couple in a home doesn’t makeenough to complete the family budget."

Fadul, after meeting with the heads of the DominicanRepublic Association Industries, said with the example from the formal economy,it’s a very clear indicator that a raise in salary is necessary, “but in theinformal sector wages are lower still.”