Employers, trade unions lock horns over minimum wage
09.12.2008, 16:00 The majority of Estonian businessmen
interviewed by Postimees would prefer the state to freeze minimum wage.
“We maintain our position that minimum wage should not increased from January
1, 2009,” said Tarmo Kriis, chairman of the Employers’ Confederation,
yesterday.
It would be the first time since 1995 that minimum wage would not be
increased at the beginning of the year.
Such a demand of employers has angered trade unions that have promised to
fight until the bitter end.
“Employers themselves have emphasized that the minimum wage should compensate
for inflation and this is also our view,” said Harri Taliga, head of the
Estonian central union of trade unions.
Taliga said that the trade unions would like to see minimum wage to be
increased to 5,000 kroons. “But whether this is realistic is a different
matter,” said Taliga, referring to the worsening economic climate.
Employers are resisting demands to increase minimum wage since the current
situation has forced companies to cut all costs.
“This is a survival training and we are all participating in it,” said Janek
Kalvi, CEO of Liviko. “How many businesses will survive depends on how well they
manage in the new situation and how competitive they are.”
According to Taliga, Estonia needs to increase minimum wage also because it
is on the bottom in Europe by ratio of minimum wage to average wage. While in
most other countries minimum wage is at least 40 percent of average wage, the
figure for Estonia is much lower.