Identifier
Created
Classification
Origin
06TEGUCIGALPA620
2006-03-30 13:11:00
UNCLASSIFIED
Embassy Tegucigalpa
Cable title:
Honduras Agrees on New Minimum Wage - 8.4 to 11
how-toVZCZCXYZ0021 PP RUEHWEB DE RUEHTG #0620 0891311 ZNR UUUUU ZZH P 301311Z MAR 06 FM AMEMBASSY TEGUCIGALPA TO RUEHC/SECSTATE WASHDC PRIORITY 1628 RUEHC/DEPT OF LABOR WASHDC PRIORITY INFO RUEHZA/WHA CENTRAL AMERICAN COLLECTIVE RUEHGV/USMISSION GENEVA 0731
UNCLAS TEGUCIGALPA 000620
SIPDIS
SIPDIS
STATE FOR DRL/IL, EB/TPP, WHA/PPC, AND WHA/CEN
STATE PASS USTR FOR LKARESH
STATE PASS AID FOR LAC/CAM
DOL FOR ILAB
E.O. 12958: N/A
TAGS: ELAB ECON ETRD PHUM PGOV HO
SUBJECT: Honduras Agrees on New Minimum Wage - 8.4 to 11
Percent Raise for Workers Retroactive to January 1
UNCLAS TEGUCIGALPA 000620
SIPDIS
SIPDIS
STATE FOR DRL/IL, EB/TPP, WHA/PPC, AND WHA/CEN
STATE PASS USTR FOR LKARESH
STATE PASS AID FOR LAC/CAM
DOL FOR ILAB
E.O. 12958: N/A
TAGS: ELAB ECON ETRD PHUM PGOV HO
SUBJECT: Honduras Agrees on New Minimum Wage - 8.4 to 11
Percent Raise for Workers Retroactive to January 1
1. After three months of deliberations between business and
labor, the Honduran Special Commission for the Minimum Wage
approved a 8.4 to 11 percent increase in the minimum wage
for 2006 on March 25. The increase is retroactive to
January 1. The official decree signed March 27 is awaiting
publication in La Gaceta (akin to the Federal Registry) in
order to become effective law. This tripartite Special
Commission includes the Government (represented by the
Minister of Labor, Rixi Moncada),the private employers'
association (COHEP),and the secretaries general of the
three labor confederations.
2. The revised daily minimum wage scale is broken down by
sector and by size of business: small (1-15 workers) with an
11 percent increase and large (16 or more workers) with an
8.4 percent increase; the financial services sector has a
9.5 percent increase. The scale ranges from minimum 68.0
lempiras (USD 3.58) per day for workers in small agriculture
to maximum 107.06 lempiras (USD 5.63) per day for workers in
financial/insurance companies and workers in export-oriented
businesses (including maquilas and certain commercial
agriculture such as tobacco, coffee, melon, bananas, and
seafood). Workers in such areas as construction, services,
mining, transportation, communication, etc. have minimum
wages in between these two rates, depending on their sector.
3. The minimum wage scale in 2005 ranged from 61.26 lempiras
(USD 3.25) to 97.77 lempiras (USD 5.19) per day.
Inflation was approximately 8.8 percent in 2005 according to
the Central Bank. Thus far, the inflation rate for early
2006 is 7.05 percent according to the Central Bank.
4. The deliberations started with the tripartite Special
Commission on December 17, 2005. They had six lengthy
formal meetings. The workers' sector began their
negotiations at 40 percent, and the business sector began at
about 2 percent. Both sectors are in agreement that they
want conditions conducive to a larger general policy on
salaries that would drive automatic yearly increases.
Ford
SIPDIS
SIPDIS
STATE FOR DRL/IL, EB/TPP, WHA/PPC, AND WHA/CEN
STATE PASS USTR FOR LKARESH
STATE PASS AID FOR LAC/CAM
DOL FOR ILAB
E.O. 12958: N/A
TAGS: ELAB ECON ETRD PHUM PGOV HO
SUBJECT: Honduras Agrees on New Minimum Wage - 8.4 to 11
Percent Raise for Workers Retroactive to January 1
1. After three months of deliberations between business and
labor, the Honduran Special Commission for the Minimum Wage
approved a 8.4 to 11 percent increase in the minimum wage
for 2006 on March 25. The increase is retroactive to
January 1. The official decree signed March 27 is awaiting
publication in La Gaceta (akin to the Federal Registry) in
order to become effective law. This tripartite Special
Commission includes the Government (represented by the
Minister of Labor, Rixi Moncada),the private employers'
association (COHEP),and the secretaries general of the
three labor confederations.
2. The revised daily minimum wage scale is broken down by
sector and by size of business: small (1-15 workers) with an
11 percent increase and large (16 or more workers) with an
8.4 percent increase; the financial services sector has a
9.5 percent increase. The scale ranges from minimum 68.0
lempiras (USD 3.58) per day for workers in small agriculture
to maximum 107.06 lempiras (USD 5.63) per day for workers in
financial/insurance companies and workers in export-oriented
businesses (including maquilas and certain commercial
agriculture such as tobacco, coffee, melon, bananas, and
seafood). Workers in such areas as construction, services,
mining, transportation, communication, etc. have minimum
wages in between these two rates, depending on their sector.
3. The minimum wage scale in 2005 ranged from 61.26 lempiras
(USD 3.25) to 97.77 lempiras (USD 5.19) per day.
Inflation was approximately 8.8 percent in 2005 according to
the Central Bank. Thus far, the inflation rate for early
2006 is 7.05 percent according to the Central Bank.
4. The deliberations started with the tripartite Special
Commission on December 17, 2005. They had six lengthy
formal meetings. The workers' sector began their
negotiations at 40 percent, and the business sector began at
about 2 percent. Both sectors are in agreement that they
want conditions conducive to a larger general policy on
salaries that would drive automatic yearly increases.
Ford