‘We will look for these export figures in the future’
The president of the Aegean Exporters’ Union Co-ordinator, Jak Eskinazi, stressed that an increase in the minimum wage would not be beneficial to any sector in an environment where purchasing power decreases by the day and is crushed by inflation.
Jak Eskinazi said: “The rate of minimum wage workers in Turkey is more than 60 percent. In European countries, this figure is around 5% in some countries and 10% in some countries. Turkey is on its way to becoming a minimum wage country. There is an employment crisis in the face of growing expectations for the increase in the minimum wage. While inflation in Turkey is 10 times higher not only in developed countries but also in the world average, we will see it reach an even higher peak after this increase. In less than 24 hours, food prices began to rise. Wages melt before they leave your pocket. The important thing is not to raise wages, but to increase purchasing power. As the cost of the minimum wage to the employer increases, the products produced increase. This increase is reflected in the pockets of the people,” he said.
“THE PRESSURE ON THE CURRENCY MUST BE REMOVED”
Noting that the minimum wage increased from $318 in 2021 to $455 today, Eskinazi said: “Exporters earn income in foreign currency. For our sectors to survive, we want the pressure on the exchange rate to be removed and a more balanced exchange rate system to be established. If it continues like this, we will not be able to meet the 2023 targets. When our exporters do cost calculations for incoming orders, they cannot receive orders. The cost of the minimum wage for the employer is around 13,000 TL. All obligations other than salary must be fulfilled by the State, ”he said.
“INCOME TAX REGULATIONS SHOULD BE MADE”
Jak Eskinazi asserted that income tax brackets should be regulated so that employees do not feel oppressed by inflation and said, “Income tax base brackets should be increased in proportion to inflation so that employees are benefit from the salary increases that we have made to compensate for inflation. In the current situation, the salary increase loses meaning and ineffectiveness with greater income tax cuts in a short time. To ensure that the well-being that the worker will gain with a salary increase is permanent, the income tax regulation must come into force quickly.
“EXCHANGE PRESSURE WILL INCREASE IMPORTS”
Eskinazi said: “As exporters we experienced the Corona virus epidemic, the 10-month war between Ukraine and Russia, economic uncertainty, the possibility of recession, rising energy costs, loss of parity and problems accessing to financing, we are at a point where we cannot get out of the calculation if we consider the increases in other entries after the last increase. We lost the export advantage that we gained due to the freight crisis and the epidemic due to the pressure on the exchange rate. We will be looking a lot for these export figures in the future. We anticipate that unemployment will increase as a result of the lack of orders. The pressure on the exchange rate will increase imports and we will be able to find the foreign currency we need. Our goal should not be to save the day, but to prepare for the future with financial policies that increase welfare by controlling inflation. It will be very difficult for companies that export with this exchange rate to continue in 2023.