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“RESULTADOS DEL ESTUDIO PARA PROPONER EL MONTO DEL AUMENTO AL SALARIO MÍNIMO PARA 2020 Y SUS REPERCUSIONES”

El Salario Mínimo tuvo una recuperación histórica en 2019, sin embargo, aún presenta gravísimos rezagos que merman la calidad de vida de la clase trabajadora.

• Para que el Salario Mínimo alcance el poder adquisitivo de 1976 debiera aumentar 281%; mientras que para nivelar el crecimiento del PIB per capita del periodo neoliberal, el aumento debiera ser de 349%.

• Para 2020, el Salario Mínimo podría aumentar en un rango entre 24 y 25% nominal para llegar a un monto de $128.60 diarios sin que la inflación rebase el objetivo de la política monetaria (3% +/- 1%).

• Es recomendable y de prioridad máxima continuar con una política para aumentar el poder adquisitivo de los salarios con el fin de alcanzar niveles dignos.
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Living-wage assessment – Table T5: 1996-2017 Real wage-gap rates for fourteen selected economies, in purchasing power parity (PPP) terms, for all employed in manufacturing. *(The base table used for all PPP real-wage gap analysis)

2017 is the first year in the 22-year span in this report that US hourly wage rates dropped (0,9%). This enabled the vast majority of countries to reduce their comparative wage gaps or increase their surpluses in their manufacturing wage Eq-Index or at least keep their position.

Japan has reversed the downward trend in living-wage equalisation (Eq-Idx) that began in 2013. South Korea sustained the growing trend of its Eq-Idx that resumed in 2014 after a brief downturn in 2013. A strong drop of Singapore’s hourly rate in local currency produced a 1 point loss in its Eq-Idx.

•In the euro zone, Spain, Germany and France stopped their downturn that began in 2012, after steady and stronger growth of the US hourly rate vis-à-vis the growth of their comparative hourly rates in euros. In contrast, Italy’s drop of its hourly rate of almost 4% in local currency and 2% in US dollars, produced further erosion of its Eq-Idx that began in 2014.

The United Kingdom, reversed the sustained erosion of its Eq-Idx that began in 2008 and gained four points from its 2016 position. In contrast, Australia continued to decrease its Eq-Idx that began in 2014, with 4,4% drop of its hourly rate in local currency and a 1,9% increase in the PPP cost of living. In the case of Canada, the combination of its hourly rate increase in Canadian dollars of 9,4%, its currency revaluation of 2,2% and the 0,9% US rate decrease, produced an 11,8% increase of its hourly rate in US dollars between 2016 and 2017.

South Africa is a new economy incorporated into this report, showing a steady increase of its Eq-Idx since 2004, the earliest year with available data. Extremely strong growth of hourly rate in local currency (41%) at a much higher rate than strong currency devaluation (17%) produced a strong 31% increase of Turkey’s Eq-Idx, the highest of all economies included in our reports.

In Brazil the hourly rates and the Eq-Idx are bound to drop in 2018 and 2019, given that Bolsonaro’s new government is deepening the anti-labour policies initiated by the Temer government. In Mexico wage policy appears to have changed in 2017 after the execution of consistent supply-side policies over more than three decades. Yet, Mexico continues to have one of the widest living-wage gaps among the 41 countries included in all our reports, just ahead of China, India and the Philippines.

 

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¡2019!

Living-wage assessment – twenty-eight European economies. 

2017 is the first year in the 22-year span in this report that US hourly wage rates dropped (0,9%). This enabled the vast majority of countries to reduce their comparative wage gaps or increase their surpluses in their manufacturing wage Eq-Index. Most European economies improved their living-wage equalisation position very meaningfully.

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22 November 2019!
¡2019!
Recent Publications
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2019 Report: Living-wage assessment – PPP Wage rate gaps for selected "developed and emerging" economies for all employed in manufacturing workers (1996 up to 2017).

Overall, 2017 is the first year in the 22-year span in this report that US hourly wage rates dropped (0,9%). This enabled the vast majority of countries to reduce their comparative wage gaps or increase their surpluses in their manufacturing wage Eq-Index or at least keep their position.

Of the twelve economies in this report with data since 1996, Germany continues to have the best position with an actual equalisation advantage over the US in real PPP terms in its hourly wage rates, followed by France with a one point advantage over US wage rates. All other countries continue to record wage gaps vis-à-vis equivalent manufacturing wage rates in the US. Seven out of the twelve countries in this chart improved their position in 2017 vis-à-vis 2016 by increasing their advantage (Germany and France) or decreasing their wage gaps (Canada, UK, Spain, Japan and South Korea). Brazil and Mexico remained with their same gap in 2017 as in 2016. Only Italy, Singapore and Australia increased their gaps from the previous year. Mexico and Brazil continue reporting the worst wage gaps.

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New 2019 Report!
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2019 Report: Living-wage assessment – New assessment of Mexico's wage rate gap 1996-2017
Mexico’s fraudulent government, fixated on the precarisation of Mexican society, deliberately contained real wages in manufacturing and across all economic sectors as a core matter of its economic policy for nearly 36 years. This appears to begin to change.

Mexico’s track record since 1996 exposed a deliberate state policy of maintaining modern-slave-work real wages between 1996 and 2015. However, wage policy appears to have changed in 2017 after the execution of consistent supply-side policies over more than three decades. For the first time the federal minimum wage was increased above inflation in 2017 and 2018. Through a so-called “Independent Recovery Amount”, the minimum wage for 2017 was increased arbitrarily by 9,6%, including 3,9% to offset the estimated CPI inflation rate. The same criterion was applied for 2018, for a total minimum wage increase of 10,4%, including a 3,9% increase to offset CPI inflation. In 2019, Mexico’s new government, touting to implement a strong minimum wage recovery policy, increased the minimum wage by 16,2%, including a 5% increase to offset inflation.

All of this seems to have a direct positive impact on manufacturing wages in real terms and on its equalisation with comparative US wages. Between 2014 and 2017 the hourly rate in local currency increased 41,2%, but the peso experienced a steep devaluation of 29,8%. Thus the hourly rate in US dollars decreased slightly by 0,8%. However, due to the devaluation of the Mexican peso and low inflation, the PPP conversion factor dropped 23,6% for the same period. This allowed the Eq-Idx to gain four points, to 23, both in 2016 and 2017, the highest recorded index in the 22 year span of time. Yet, Mexico continues to have one of the widest living-wage gaps among the 41 countries included in all our reports, just ahead of China, India and the Philippines.

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New 2019 Report!