Minimum Wage Agreement in Nicaragua Promotes Development of Free Zones

Jan. 29, 2010 - PRLog -- The Government of Nicaragua, labor unions and the private sector signed this past January 20th of 2010 an agreement which sets salary adjustments in the free zones sector for the next three years. The objective of the agreement is to protect jobs within the sector as well as to offer predictability so investors may effectively develop financial plans for their companies.

This is the second agreement of this type that has been signed by the three parties to foster the long-term development of the sector. The first agreement was signed in March last year and it established minimum wage adjustments in eight percent for 2009 and 12 percent for 2010. The new agreement, known as the “Social-Labor Consensus Agreement by the Free Zone’s Tripartite Labor Commission”, establishes minimum wage increases for 2011, 2012 and 2013 in eight, nine and ten percent, respectively.

The agreement, besides the salary adjustments, also includes promoting social housing projects, increasing the number of commissaries among free zone companies and ensuring at least 40,000 daily food packages at preferential prices for employees. It also foresees the creation of recreational centers and savings and loans cooperatives.

“This agreement between the Government of Nicaragua, labor unions and the private sector demonstrates the existence of a national consensus to guarantee the successful development of free zones, contributing to the stability of employment and fostering the creation of new and dignified jobs”, commented Javier Chamorro, Executive Director of PRONicaragua.

It is estimated that by 2013 the number of jobs in the sector will increase by 15,000, reaching a total of 85,000 employees throughout the country within free zone companies. Currently, there are around 30,800 men and 38,100 women working in free zone companies all over the country.

For additional information, please visit: www.pronicaragua.org