MARIA MINCHEVA: MORE LABOR COSTS, LESS INVESTMENT OPPORTUNITIES

CITUB reports a serious rise in food prices. The union insists on a rapid increase in income, namely the minimum wage to become BGN 700 from November, and from next year BGN 764.

The forecasts are that the rise will continue and at the end of the year will exceed 6%.

To compensate for the rise in prices, trade unions are insisting on an average wage increase of 12.5 per cent and a minimum increase of 17.5 per cent.

Employers’ organizations report that against the background of high prices of electricity and natural gas, for some companies the increase of minimum wage, which also pushes upwards higher wages, will be a challenge.

“More labor costs, less costs for investment for renovation for companies that are trying to develop, some will have them, some will not”, says the vice president of BIA Maria Mincheva.

Trade unions also demand the poverty line to be increased to BGN 460 and that all payments for social assistance to vulnerable groups be calculated through it against the background of inflation.