Has the electoral promise of $500 minimum wage been crossed out?
Statements by state authorities that ‘the minimum wage will rise to the $500 level’ before the May 14 elections began to go unnoticed with the sharp rise in the exchange rate after the elections.
Vedat Bilgin, who was Minister of Labor and Social Security before the new cabinet, said in a television program in which he participated: “We will regulate the minimum wage in July in a way that protects real purchasing power. In January we made a deal that took it to the highest level of more than $455 in dollars in the history of the Republic. We will do the same in July. It will be a fee of approximately 500 dollars. Our work is done, ”he said.
However, the minimum wage, which was $455 at the beginning of the year, has dropped to around $360 today.
The Commission for the Determination of the Minimum Wage will hold its first meeting tomorrow at 2:00 p.m. to discuss the interim increase in July, but it is noteworthy that the authorities, who made statements about the minimum wage after the elections, did not rule on the advertised $500. before the election.
FIRST REACTION OF EXPORTERS
The first reaction to Bilgin’s $500 post-election announcement came from Mustafa Gültepe, president of the Turkish Exporters’ Assembly (TIM).
On June 7, when the exchange rate reached new record levels, $23.1/TL; Speaking after the euro/TL broke above 24.93, Gültepe said: “We should be able to keep the level between $300 and $400 in minimum wage on a maximum dollar basis” and continued as follows:
“If we can give 500, special studies must be done to keep us at a sustainable point, otherwise the industry is not in a position to handle it.”
However, as of today, the dollar exchange rate, which broke a new record in the new week, recorded a new high of 23.65.
VICE PRESIDENT YILMAZ DID NOT MENTION
Vice President Cevdet Yılmaz, who made statements on the minimum wage with an interval of two days, did not make any statement that the new salary to be determined would increase to the level of 500 dollars.
In his speech on June 10, Yılmaz said, “Economic developments, especially inflation, will be assessed and a compromise will be reached,” making another statement today, saying, “We hope these three parties will reach an agreement.”
Emphasizing inflation in his statement, but arguing that workers’ purchasing power did not decline in the face of inflation, Yılmaz said without mentioning the $500 spent before the election:
“We will continue to be evaluated in a balanced manner to the satisfaction of all segments.”
PRESIDENT OF ITO: THE BUSINESS WORLD IS NOT SUITABLE
Istanbul Chamber of Commerce (ITO) President Şekib Avdagiç also said in a statement he made last week that the minimum wage in Turkey should be determined on the basis of TL, saying: “Our business world does not consider it appropriate to determine a rate that will be valid within the borders of Turkey in foreign currency”.
“We expect the new minimum wage to be determined according to the methodologies so far,” Avdagiç said, adding: “Our expectation for the rate of increase of the minimum wage is to take into account the CPI of the first 6 months.”
EMPLOYERS UNION: WE ARE IN Türkiye, WE SPEAK TL
Another reaction to the increase in the minimum wage to $500, or TL 11,798 at today’s exchange rates, came from Özgür Burak Akkol, president of TİSK, which represents the employer on the Minimum Wage Commission.
Akkol’s statement, “We are in Turkey, we will speak TL” when questioned by reporters, drew attention.
“Our vision is to quickly complete this process with a tripartite agreement. Akkol said: “My personal wish is to complete the process before the party,” Akkol said.
“The commission also takes into account exchange rates and purchasing power… Many parameters are evaluated. There is good will. Inflation has a downward trend. Despite this, we agree to a provisional increase.
What is important is a balanced increase that does not interrupt employment and takes into account the wishes of both the employee and the employer. We are in Türkiye, we will speak in TL.”