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Guatemalan firms threaten 6,000 layoffs over wage hike

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  • Guatemalan firms threaten 6,000 layoffs over wage hike

    Guatemala can't afford to lose 6000 jobs. The fact is poorer women from Honduras would work those textiles job for less.


    Guatemalan firms threaten 6,000 layoffs over wage hike

    Published January 13, 2011

    | EFE

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    Guatemala City – The organization representing Guatemala's textile and clothing manufacturers said firms plan to lay off 6,000 workers this month in response to the hike in the minimum wage decreed by President Alvaro Colom.

    Companies "will reduce their payrolls by 10 percent in the month of January to be able to cover their costs," Vestex chief Carlos Arias told a press conference.

    He said the layoffs are a consequence of Colom's decision to increase the daily minimum wage by 96 cents.

    Textiles and clothing constitute "the country's most important export sector, which supports some 70,000 families and contributes 6 percent of gross domestic product," Arias said.

    To avert layoffs, Vestex asked the president to "gauge the negative consequences" of his decision and "substantially reduce" the wage increase.

    As Guatemalan clothing and textile manufacturers are unable to raise prices in the current international environment, "no other alternative is left to our sector than to eliminate jobs to survive in this market," Arias said.

    Colom imposed the increase after the National Salary Commission, comprising representatives of the employers, workers and the Labor Ministry, failed to reach agreement on the 2011 minimum wage.

    The president said the hike he ordered will allow the earnings of low-paid workers to almost keep pace with inflation, which was 5.39 percent last year.

    More than half of Guatemala's 14.4 million people live below the official poverty line and upwards of 2,000 Guatemalan children died last year of causes related to malnutrition.

    Read more: Guatemalan firms threaten 6,000 layoffs over wage hike - Fox News Latino
    “the misery of being exploited by capitalists is nothing compared to the misery of not being exploited at all” -- Joan Robinson

  • #2
    But...raising minimum wage helps poor people... It's a "civil rights issue" as declared by Teddy "drunken killer" Kennedy.
    "Only Nixon can go to China." -- Old Vulcan proverb.

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    • #3
      yeah, when was the last time he ate "bitterness"
      “the misery of being exploited by capitalists is nothing compared to the misery of not being exploited at all” -- Joan Robinson

      Comment


      • #4
        The president said the hike he ordered will allow the earnings of low-paid workers to almost keep pace with inflation, which was 5.39 percent last year.
        Guatemalan firms threaten 6,000 layoffs over wage hike
        looks like they will have no choice but to become poorer...........

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        • #5
          it is a no win situation. lose 5.39 percent of buying power or losing a job.
          “the misery of being exploited by capitalists is nothing compared to the misery of not being exploited at all” -- Joan Robinson

          Comment


          • #6
            I'd like to see what the increase will really do to the companies bottom line. Clearly something has to be done because there are far too many people living in poverty there and the current way of doing things, ie slave labor, is not working. It is good to hear of other countries trying to raise their wages because I am sick and tired of workers in the U.S. having to work for less and less as the bar gets lowered.
            Removing a single turd from the cesspool doesn't make any difference.

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            • #7
              increase wages would mean a greater buying power, I am all for that. however, some companies might just move to a cheaper location after the hike in the minimum wage and it is the single mother that suffers. Moving textile mall is very easy. Then again, I am not a single mom with three mouths to feed.
              “the misery of being exploited by capitalists is nothing compared to the misery of not being exploited at all” -- Joan Robinson

              Comment


              • #8
                What amazes me is that no matter what third world shit hole you go to there is always a place where things are worse. People in those countries really need to oust the leadership when it is not working for the best interest of the country. If the people refuse to do so I feel no need what so ever to help them. Taking care of predatory companies is easy. All you have to do is a little research and see where and how companies operate and if they don't pass muster then don't buy their product. Developed countries have the greatest leverage here because that is where the greatest mark-ups and profits occur. Buy responsibly is a concept we have to adhere to if we want things to get better.
                Removing a single turd from the cesspool doesn't make any difference.

                Comment


                • #9
                  I buy the product with the highest quality at the price point I can afford. I don't care where it's made. In fact, I purposely not buy anything that's made with union labor. I prefer my stuff made in the 3rd world. That means I'm providing them work opportunities.
                  "Only Nixon can go to China." -- Old Vulcan proverb.

                  Comment


                  • #10
                    Originally posted by gunnut View Post
                    I buy the product with the highest quality at the price point I can afford. I don't care where it's made. In fact, I purposely not buy anything that's made with union labor. I prefer my stuff made in the 3rd world. That means I'm providing them work opportunities.
                    So your OK with people at home losing their jobs so you can support those half way around the world?

                    I hear you on quality. No one that puts out garbage should be allowed to continue. I don't care how cheap it is.
                    Removing a single turd from the cesspool doesn't make any difference.

                    Comment


                    • #11
                      Originally posted by bonehead View Post
                      So your OK with people at home losing their jobs so you can support those half way around the world?
                      Absolutely no problem with it at all. They shouldn't have priced themselves out of a job.
                      "Only Nixon can go to China." -- Old Vulcan proverb.

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                      • #12
                        as much as i dislike the unions, saying "they shouldn't have priced themselves out of a job" puts too much of the responsibility upon the unions alone. there's a lot of factors as to why labor costs are more expensive here, and it's not all the workers' fault.
                        There is a cult of ignorance in the United States, and there has always been. The strain of anti-intellectualism has been a constant thread winding its way through our political and cultural life, nurtured by the false notion that democracy means that "My ignorance is just as good as your knowledge."- Isaac Asimov

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                        • #13
                          Originally posted by astralis View Post
                          as much as i dislike the unions, saying "they shouldn't have priced themselves out of a job" puts too much of the responsibility upon the unions alone. there's a lot of factors as to why labor costs are more expensive here, and it's not all the workers' fault.
                          Sure. I also blame the government. Minimum wage is a horrible idea promoted by the union and socialists.
                          "Only Nixon can go to China." -- Old Vulcan proverb.

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                          • #14
                            still doesn't fully explain it. this is just comparative advantage and the development cycle at work here, and would have happened anyway even if there was no minimum wage and no regulations and no unions.
                            There is a cult of ignorance in the United States, and there has always been. The strain of anti-intellectualism has been a constant thread winding its way through our political and cultural life, nurtured by the false notion that democracy means that "My ignorance is just as good as your knowledge."- Isaac Asimov

                            Comment


                            • #15
                              Originally posted by gunnut View Post
                              Sure. I also blame the government. Minimum wage is a horrible idea promoted by the union and socialists.
                              How does this apply to capitalist nations such as China where there they do have a minimum set of wages.
                              “the misery of being exploited by capitalists is nothing compared to the misery of not being exploited at all” -- Joan Robinson

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