Business Owners Drive Minimum Wage Reduction in the North

The north’s net minimum wage was reduced by 120TL (€3.43) per month on Friday following an appeal by business owners. Initially set at 29,640TL (€848), the new figure now stands at 29,520TL.

Union Response

Public sector workers’ union (Kamu-Is) leader Ahmet Serdaroglu, who represents workers at the north’s minimum wage determination commission, chose not to vote at the commission’s meeting to reduce the wage on Friday. “We did not take part because we did not see the need to take part,” he said, adding that the ‘government’ had justified the reduction by claiming they were bringing in cheap meat from the Netherlands and possibly Spain.

“The government set its sights on the 120TL in the pocket of a minimum wage worker. I do not understand what they are trying to prove. The government does not know what it is doing,” Serdaroglu remarked.

Economic Context

The original gross monthly figure was the equivalent of €975, just €25 short of the Republic’s minimum wage. However, with the new reduction, it will likely fall closer to €30 per month less. Despite this reduction, it is noteworthy that the north’s new gross minimum wage remains higher than that of 13 European Union member states, including Greece.

This wage reduction has sparked varied reactions among business owners and workers alike. While business owners have welcomed the decision, citing economic pressures and the need for cost-cutting measures, workers and their representatives are concerned about the impact on their livelihoods.

As the north navigates these economic adjustments, the debate over minimum wage and wage reduction continues to be a contentious issue, reflecting broader economic challenges and differing perspectives on how best to address them.

wage reduction
The wage reduction of 120TL per month in the north was primarily due to economic downturns, budget constraints, and efforts to align public sector wages with fiscal realities. Additionally, inflationary pressures and currency devaluation played significant roles in necessitating these adjustments.

Can the government justify the wage reduction of 120TL per month despite the norths higher gross minimum wage?

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