Economic policy

Wages and pensions fall in Uruguay due to economic policy

The previous year ended as the second consecutive year of the current right-wing coalition government, in which workers’ wages were adjusted below inflation, which also means pensioners will receive a pension below the level of consumer prices.

Ramón Ruiz, director of the PBS for the labor movement stressed that the loss of purchasing power does not happen spontaneously; it is the result of the application of an economic policy that includes wage moderation.

He mentioned the executive branch, the chairman of the Office of Planning and Budget, Isaac Alfie, the Cabinet and the president of the country as responsible for this measure.

The Cuesta Duarte Institute of Economic Studies, which is part of the Pit-Cnt trade union centre, pointed out that in the Wage Councils the government voted 17 times in favor of the employers and 4 times in favor of the workers, while he had to give a judgment due to differences between the parties on the future adjustment of wages.

On the other hand, the representative of pensioners and pensioners at the BPS, Sixto Amaro, said that “wages should increase, because the gross domestic product has increased, there are more exports, there is more production, and the income of the country’s whole production sector has grown”.

A few days ago, the National Institute of Statistics published that last year the average nominal wage index increased by 5.89%, compared to 7.6 in 2020.

Ruiz and Amaro pointed out that in this way the government has saved 75 million dollars and that in 2022 it will stop paying 100 million dollars, as part of a fiscal adjustment policy.

The consumption monitor from consulting firm Scanntech, of Uruguay, reflected a seven per cent drop in consumption in December 2021, compared to the same month a year earlier, while billing rose two per cent. cent, which considers an inflationary effect of nearly eight percent.