New Minimum Wage Will Bring More Financial Woes

North Cyprus News - Tufan Erhurman - Leader of CTP
[CTP Chairman – Tufan Erhürman]
The leader of the Republican Turkish Party (CTP), Tufan Erhürman, made a statement yesterday about the announcement of the new minimum wage, emphasising that another price increase is on the way. In a post on social media, Erhürman said that the economy can be turned around if the right steps are taken, but added, “It’s impossible to expect that from those who claim to be running the country but focus on everything else except actually governing”, Yeniduzen reported.

Here’s Erhürman’s full statement:

The new minimum wage has been set at 35,180 TL net. The decision was made unanimously by the government and worker representatives in a meeting that the employers’ representative didn’t attend. It seems likely that the employers will object to this. I’m reminded of what happened on May 31, 2024. Back then, just 10 days after the minimum wage was set with votes from both the workers and the government, the government changed its mind and sided with the employers, lowering the minimum wage by 124 TL. It’s worth noting that here! Let’s see what happens this time!

But we already know what’s coming: businesses, especially smaller ones, are going to struggle with labour costs. Those that can adjust their prices (in other words, raise prices for goods and services) will do so, which means the cost of living will rise. Those who can’t adjust may have to lay off workers, turn to cheaper labour, operate under the table, or even shut down.

Considering what happened on May 31, could the minimum wage be lowered again after the upcoming ‘congress’? I’ve raised that possibility. Last time, the cut was small, but this time it could be worse. If the minimum wage goes down, will the prices that have gone up also drop? I doubt it. Can someone survive on the minimum wage? No, they can’t.

If the wage isn’t lowered, will the issues I mentioned earlier for businesses—especially small ones—still happen? Yes, they will. And will this situation lead to more illegal workers, a drop in quality, an increase in workers from third countries, more business closures, and a greater shift of the economy to the south? Absolutely.

After the ‘congress’, could we also see some ‘adjustments’ to the cost-of-living allowance? We’ve already seen signs of it!

We’re being presented with a choice between a rock and a hard place. For months now, we’ve been warning, ‘We’re heading for a wall. These things are going to happen. You need to manage the economy,’ but the ones too busy with the congress are now forcing us to face this dilemma. Soon, someone will likely say, ‘Well, you warned us, and we stayed silent, but here we are—now we have to choose between two bad options.’

But the right alternative isn’t either of those bad options. It’s not about forcing people to live on the brink of poverty or letting businesses fail and the economy shift south. The solution is to manage the economy properly, together with the people in this country who know what they’re doing. And you can’t expect that from those who claim to be running the country but are focused on everything else instead. It’s time for everyone to face reality”.

Yeniduzen

Other Stories

Ads Blocker Image Powered by Code Help Pro

Ad Blocker Detected

We have detected that you are using extensions to block ads. Please support us by whitelisting our website in your ad blocker.

Powered By
Best Wordpress Adblock Detecting Plugin | CHP Adblock