Luis García de Camps considers that this mechanism could help formalize employment in the country
MADRID, Nov. 4 (EUROPA PRESS) –
The Minister of Labor of the Dominican Republic, Luis Miguel de Camps García, pointed out that the implementation of the Minimum Vital Income (IMV) in Spain is a very “interesting” and “enriching” experience that could serve as an example to follow in his country, with the aim of increasing the percentage of formal workers, which he considers one of the structural problems of his labor market.
In an interview with Europa Press, the minister assessed the possibility of carrying out a similar initiative in the Dominican Republic. “We are studying the Spanish experience, which is of great importance to us,” he explained.
Unlike other countries, informal employment in the Dominican Republic accounts for around 50% of the working population. To reduce this figure, the Minister expressed that measures such as the IMV help workers to enter the formality of work. “After the pandemic, in Spain or Argentina, the benefits of formalizing employment became clear,” he said.
Moreover, De Camps pointed out that the IMV is an incentive not only for formalization, but also for the “salary”, which is crucial at a time of high inflation. Concretely, despite the fact that the rate has fallen since the summer, the Dominican Republic is facing an inflation of 8.6%.
“We already knew the IMV when it was in the technical process and we were interested in its application, since in Spain it was used as a mechanism for targeting public resources”, he mentioned.
MINIMUM WAGE AND PRICE FREEZE
Among the measures that are being carried out to reduce inflation, De Camps made a point of highlighting the 16 minimum wage increases that have been carried out in the country, “all agreed on a tripartite basis” and which have been adjusted to the inflationary context.
Asked about the possibility that the increase in wages could lead to an inflationary spiral, the minister stressed that “we must be careful”, but he recalled that they are not proposing a simple increase in wages, but rather have proposed a social pact to reduce the gap between the minimum wage and the cost of the basic basket.
Regarding this issue, in addition to subsidies due to increased fuel prices, the Dominican Republic government has “guaranteed” that inflation will not multiply with subsidies focused on many essential foods in the basic household purchases.
Furthermore, on the possibility of linking an increase in pensions to inflation, as in Spain, the minister recalled the problems still facing its social security system, although he expressed his desire to “ensure a quality of life” to retirees, which goes through the establishment of a minimum pension on which there must be improvements in wage returns.
COMMITMENT TO THE CREATION OF QUALITY AND “GREEN” JOBS
As part of his stay in Madrid, the Minister of Labor took part in the OECD’s ‘Global Deal’ forum, in which he highlighted the potential of the Dominican Republic to create green jobs, only behind Germany or the United States in proportionality rate. “We calculate that around 12% of jobs can be green,” he told Europa Press.
“There are about 78 million jobs in all of Latin America that are meant to be green jobs, but public and private investment and worker training are needed,” he said.
In this sense, he also appealed to the importance of including women’s work in this process of transformation, “a challenge shared with other countries such as Spain”.