IZSIAD/Cengiz: It’s Inhumane to Call the Minimum Wage at the Hunger Line Excessive
Forex - Hüseyin Cengiz, the Chairman of the İzmir Industrialists and Businessmen Association (İZSİAD), evaluated the 30% increase in the minimum wage. He pointed out that the net minimum wage of 22,104 is close to the hunger threshold, stating, “I do not find it humane to call this excessive.”
Cengiz stated that this figure does not satisfy the workforce because it is at a level close to the hunger threshold, and he believes their dissatisfaction is justified. He added, “However, this is also not a satisfying figure from the employers' perspective.”
Emphasizing the need for a wage policy that enhances the welfare level of employees on one side while allowing industrialists and exporters to gain a competitive edge, Cengiz remarked, “On one hand, minimum wage earners are becoming poorer due to salary increases that fall below inflation, while on the other hand, employers are compelled to raise salaries for all their employees by at least the minimum wage increase rate. With the minimum wage, which costs the employer around 40,000 TL, especially in labor-intensive sectors, our producers will become increasingly distanced from global competition.”
Cengiz expressed that increasing employees' purchasing power and providing public support concerning taxes on salaries, bonuses, and wages is necessary to emerge from this predicament quickly. He noted, “It is clear that the exporter will face even greater difficulties in the new year as the Turkish lira gains value against foreign currencies, while production costs increase. Exporting will become increasingly challenging with the current exchange rates. We recommend providing exchange rate support to exporters in this matter.”
Cengiz: “Public savings must come into play” Indicating that the reflection of the minimum wage increase on prices should be controlled, Cengiz said, “Employees should not be allowed to take advantage of this increase, considering its effect on production and distribution costs. Alongside monetary policies that will decrease inflation, a comprehensive fiscal policy should be implemented, especially with more decisive measures against the informal economy. The expected savings and sacrifices from the private sector must also be urgently realized on the public side. The more effective and efficient use of public resources should be closely monitored.”
Cengiz: “If factory chimneys don’t smoke, the stove at home won’t either” Cengiz warned that distancing from competition and production would lead to a decrease in employment and an increase in unemployment, stating, “By supporting production and exports, we will ensure that factory chimneys smoke and that the stove at home won’t die out. Incentive and grant programs for employment should be implemented swiftly, opening up new employment opportunities by increasing production and exports.”