The hike in the monthly minimum wage—from 1,130 to 1,300 soles (approximately 382 US dollars)—was considered inadequate by the General Confederation of Workers (CGTP) and met with reservations by Confiep, albeit from differing perspectives.
Gustavo Minaya, the union federation’s deputy secretary-general, remarked that the amount is insufficient, the effective date remains undefined, and the figure does not adhere to criteria agreed upon by the National Labor Council (CNT)—a consultative body comprising trade unions, Confiep, and the State (represented by the Ministry of Labor).
The labor leader also noted that the official minimum wage consistently falls below the cost of a basic subsistence basket for a family of four, which, according to official figures, stands at 1,848 soles (543 US dollars).
Meanwhile, Confiep head Jorge Zapata argued that the announced wage increase would not reach informal workers (who make up over 70 percent of the workforce) and would negatively impact small businesses, likely driving them into the informal sector.
Labor Minister Juan Sheput stated that both the implementation date and the specific amount of the raise would require approval from the CNT; however, business leaders there oppose wage increases, labeling them—in neoliberal terms—as “excessive labor costs.”
When asked about the matter, Minaya told Prensa Latina that the raise announced by President Fujimori should be implemented immediately, and that the CNT should determine projections for future increases to offset the rising cost of living.
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