The elections have concluded, and there is now a focus on the government’s interim increase in the minimum wage. The specific increase rate is expected to be determined based on the inflation data to be announced on June 5th. The Minister of Labor and Social Security, Vedat Bilgin, has stated that $500, which is equivalent to 10,000 TL at the current exchange rate, will be used as the basis for the increase.
The Confederation of Revolutionary Trade Unions (DİSK) believes that the minimum wage should be set at the poverty line, as employees expect a share of welfare. Prior to the election, the government pledged to raise the minimum wage in July, which was previously set at 8,500 TL in December. Minister Vedat Bilgin also announced that the lower limit for the increase would be $500. As the deadline approaches, discussions surrounding the minimum wage have intensified.
There is objection from working class representatives regarding the 10,000 TL limit proposed by Minister Bilgin. DISK President Arzu Çerkezoğlu argues that inflation is rapidly increasing and suggests that the minimum wage should be adjusted quarterly until it reaches single digits. Çerkezoğlu emphasizes that the minimum wage has become the average wage and advocates for setting a society wage. They argue that considering a family with two working individuals, the minimum wage per person should be 17,000 TL, and the family’s income should not fall below the poverty line of 34,000 TL.
Working Life Expert Prof. Dr. Aziz Celik believes that evaluating the minimum wage in terms of dollars is inappropriate. He emphasizes that the purchasing power of the minimum wage is crucial and should be compared with European countries if a discussion about dollars arises. Celik asserts that $500 cannot be considered successful on a global scale. When considering purchasing power, the proposed wage of $500 is worth less than the minimum wage of $356 in 2018. Over the past five years, the exchange rate has increased by 4.5 times, while the prices of products such as milk, bulgur, and beef have increased nearly 10 times.
Specific ESG Risks deduced from the article:
1. Economic risk: The increase in the minimum wage may pose economic risks for companies, particularly those with significant labor costs.
2. Social risk: The disagreement and potential dissatisfaction among working class representatives regarding the proposed increase can lead to social unrest or labor strikes.
3. Governance risk: The government’s decision regarding the minimum wage and its potential impact on the overall economy and social welfare can affect its governance reputation.
Groups of affected or vulnerable people:
1. Employees earning minimum wage: The increase in the minimum wage directly affects employees who earn at or near the minimum wage.
2. Working class representatives: The disagreement and objections raised by working class representatives indicate their vulnerability in terms of wage negotiations and labor rights.
List of companies mentioned and their roles in regards to ESG Risk:
No companies are mentioned in the article.
Affected or relevant sectors:
1. Labor-intensive industries: Sectors that heavily rely on low-wage labor may be directly impacted by the increase in the minimum wage.
List of keywords:
1. Minimum wage
2. Inflation
3. Poverty line
4. Welfare share
5. Confederation of Revolutionary Trade Unions (DİSK)
6. Government
7. Minister of Labor and Social Security
8. Vedat Bilgin
9. Election
10. Working class representatives
11. DISK President
12. Arzu Çerkezoğlu
13. Purchasing power
14. Working Life Expert
15. Prof. Dr. Aziz Celik
16. European countries
17. Economic risk
18. Social risk
19. Governance risk
20. Labor strikes
21. Labor-intensive industries.