Bulgaria’s Industrial Capital Association Opposes Minimum Wage Hike

Novinite Insider » OPINIONS | December 1, 2014, Monday // 09:23
Bulgaria: Bulgaria’s Industrial Capital Association Opposes Minimum Wage Hike Vasil Velev, Chair of the Bulgarian Industrial Capital Association (BICA), photo by BGNES

Vasil Velev, Chair of the Bulgarian Industrial Capital Association (BICA), has pointed out that all associations of employers adamantly oppose the proposal for an increase in the minimum wage.

In a Monday interview for the morning broadcast of Nova TV, Velev said that BICA had stated its opposition to the proposal during a meeting of the National Council for Tripartite Cooperation and in a number of written statements.

Velev commented on Sunday’s statement of Finance Minister Vladislav Goranov that the minimum wage hike from BGN 340 to BGN 380 would be accomplished in two stages by BGN 20, with the first increase scheduled for January and the other one for mid-2015.

“In 2014, we have a GDP growth forecast of around 1-1.5% and in 2015 the GDP growth is to reach around 1.8%. In 2014, we have a 1% growth in the average wage and in 2015 the rate is to reach 1.6%. Then all of a sudden we have a proposal for a 13% hike in the minimum wage,” the Chair of BICA noted, as cited by the BGNES news agency.

Konstantin Trenchev from the Podkrepa Labor Confederation emphasized the complaints about falling consumption, adding that ensuring higher incomes would liven up Bulgaria’s economy.

Velev argued that administrative interventions of that kind prevented Bulgaria from havinga functioning economy.

“For 25 years we have been thinking that we can get richer on the basis of a decision of the government and not through more work and less corruption. This is the main reason why unemployment will keep growing in 2015 too,” he claimed.


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Tags: Vasil Velev, BICA, Bulgarian Industrial Capital Association, minimum wage, Podkrepa Labor Confederation, Konstantin Trenchev, GDP growth
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