Business execs claim political manipulation of minimum wage law

ACCUSATIONS that the government is manipulating the enforcement of the new minimum wage as a political tool. have come from Panama business leaders

The Panamanian Association of Business Executives (Apede) said on Tuesday, February 11 stated that there have been "obvious manipulations by the Executive Body" with regard to the changes in the minimum wage passed in January.

In a statement, Apede complained that these actions "harm the competitive and distinguished companies of Panama."
The business organization unveiled its concern because "state policies are being used to affect the normal performance of private companies."

 

It said that this will be detrimental to the business climate and that the new standard is being enforced in a "selective manner" and with political overtones.

Apede also urged employers and workers to review the formula for fixing the minimum wage. This would avoid "political" interference in this matter, the organization said.
"The use of power to harm opponents is a practice that has to be overcome," it added.
The group was commenting on a Ministry of Labor report in which 12 companies were cited for failing to pay the new minimum wage.
One of those companies was Varela Hermanos, owned by opposition presidential candidate Juan Carlos Varela.
According to the Ministry, Varela Hermanos owes 220 workers $102,000 in wages and the Ministry $107,500 in fines.
Workers at the company have condemned the Ministry’s action and the company is appealing.
The company has denied the allegations and said the charges are motivated by politics.
The Ministry issued a statement Tuesday to clarify that Agencia Feduro was incorrectly included in the list of companies that supposedly breached the law.
The report added that the original information was based on data provided by a worker who was not a full-time employee. According to a subsequent review, the company was found to be compliant reports La Prensa