Clothing, auto industries urge gov’t to subsidize minimum wage hike

Turkeyand’s clothing and automotive parts manufacturers have called for the government to bear the bulk of the cost of the minimum wage increase that is set to begin in 2016, according to statements from industry representatives on Thursday.
and”The government needs to provide funding to firms for at least three years. This will also force unregistered businesses to become legitimate,and” Turkey Clothing Manufacturers Association (TGSD) President ieref Fayat said. The ruling Justice and Development Party pledged to increase the minimum wage from TL 1000 to TL 1300 starting on Jan. 1, 2016.
Clothing manufacturers are among those most worried that the increase will be devastating for business if the industry is required to bear the burden of the wage hike on its own.
Government officials have expressed concern for the problems that might arise for small businesses following the implementation of the new minimum wage, but the government has firmly maintained its position. andquotA 30 percent increase in labor expenses will weaken firmsand’ competitiveness internationally and will result in higher prices in the domestic markets,and” Fayat said.
Even after the increase, Turkey will still find itself well below the Organization for Economic Cooperation and Developmentand’s (OECD) average minimum wage. TL 1300 is currently valued at $457.
The Association of Automotive Parts and Components Manufacturers (TAYSAD) on Thursday proposed that minimum wages not be taxed by the state in order to reduce the burden on producers and firms that will soon be required to provide Turkeyand’s approximately 5 million minimum wage earners with a 30 percent pay increase.

SOURCE: TODAY’S ZAMAN

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