Veli Ağbaba announces: CHP's minimum wage demand is clear

No figure has emerged from the 2nd meeting of the Minimum Wage Determination Commission.

CHP Malatya Deputy and member of the TBMM Plan and Budget Committee, Veli Ağbaba, has made a statement regarding the minimum wage.

In his written statement, Ağbaba noted that their work on the minimum wage has been completed and stated the following:

"DETERMINING IT IN 6-MONTH PERIODS WILL BE THE MOST ACCURATE PATH"

“With the start of the minimum wage negotiations, many different figures have begun to be mentioned. We have completed our work on this matter. Based on the statements and rates provided by the state's official institutions, we have determined the necessary limits for the minimum wage.

The statements made by the government regarding determining the minimum wage on an annual basis do not align with the reality of the country. Considering that the actual inflation rates are far above expectations, it is a fact that a 1-year minimum wage to be announced will not even last 6 months against inflation and will erode. For this reason, as was the case last year, determining the minimum wage in 6-month periods will be the most accurate path.”

"WE TOOK OFFICIAL FIGURES INTO ACCOUNT"

Stating that they conducted their work by taking official figures into account, Ağbaba stated the following:

"In our minimum wage calculation, we performed a calculation by taking into account the official data announced by the state, as well as data from TÜİK and the Central Bank. After the minimum wage of 11,402 liras determined on July 1, 2023, the inflation rates announced by TÜİK were as follows: Inflation was 9.49 percent in July, 9.09 percent in August, 4.75 percent in September, 3.43 percent in October, and 3.28 percent in November. We are also aware that the government has been deliberately trying to show inflation data as low for the last 2 months. However, even as it stands, it is clear that December inflation cannot be less than 3 percent. First and foremost, these inflation losses must be added to the minimum wage determination.

Furthermore, growth figures for 2023 were announced by TÜİK for 3 quarters. Growth was 4.0 in the first quarter, 3.9 in the second quarter, and 5.9 in the third quarter. The annual average growth was 4.6. It is out of the question for laborers not to receive a share of the growth while the Gross Domestic Product (GDP) is growing. When calculating the minimum wage, the growth figure must also be taken into account, and laborers must receive the share they are entitled to from the GDP.

On the other hand, the Central Bank has announced its inflation expectation for 2024 as 36 percent.

The 2024 inflation expectation must be taken into account in the minimum wage calculation. This is because when the minimum wage is announced, it begins to erode before it even reaches the hands of the employees. Laborers suffer losses before they even receive their January salaries.

Taking all these principles into account; considering the inflation that has occurred since July as announced by TÜİK, the share that laborers should receive from growth based on the 2023 GDP figures announced by TÜİK, and the inflation rate expected by the Central Bank for 2024; the minimum wage to be announced for the January-July 2024 period must be at least 19,372 liras net. Any offer made by the government below these figures cannot compensate for the losses of minimum wage earners. A minimum wage to be announced on an annual basis does not fit the realities of the country as it will rapidly erode in an inflationary environment.

HE GAVE A FIGURE

The minimum wage calculation we have made according to the data announced by the state is already the lowest minimum wage calculation made according to official figures. It is clear that if it were calculated according to the inflation figures announced by independent organizations such as ENAG and unions, or the real inflation on the street, it would come out much higher than this. According to our proposal for the January-July 2024 period, the minimum wage must be at least 19,372 liras net.”