14797: Karshan: Feb. 7, 2003 Issue Papers: Promoting Investment and Increasing Minimum Wage (fwd)

[Bob Corbett <corbetre@webster.edu>]

From: MKarshan@aol.com

February 7, 2003 Issue Papers:  Promoting Investment and Increasing Minimum
Wage

PROMOTING INVESTMENT
AND INCREASING
THE MINIMUM WAGE

BUSINESS OPPORTUNITIES IN HAITI

·   On April 8, 2002, President Aristide and President Mejia inaugurated the
site of an industrial free zone to be constructed on the Haitian side of
their shared Haitian/Dominican border.  This free zone promises to bring
1,500 new jobs to the area in the project's first phase and 8,000 new jobs by
the project's completion.

·   Less than two weeks later, Haiti's parliament ratified a $40 million
hotel project with a U.S.-based group of investors planning to build a Hilton
Hotel in Haiti.  This landmark hotel, "Hilton Haiti", will be the only hotel
in Haiti operated by an international hotel group.

·   Upon his return from an official State visit to the Republic of China
Tawain last July, President Aristide received business delegations from
Tawain ready to survey investment possibilities in Haiti.  One group signed a
preliminary commitment to open an apparel factory in Haiti, an investment
valued at $6 million.

·   The Government of Haiti supports a bill currently before the U.S.
Congress that would extend trade benefits under the African Growth and
Opportunity Act, to Haiti.


HISTORY OF MINIMUM
WAGE INCREASES

After President Aristide was inaugurated in 1991 he addressed the growing
movement for a raise in the minimum wage.  At the same time that President
Aristide was campaigning for increased wages, he was ousted through a coup
d'etat.
In 1994, after democracy was restored to Haiti, President Aristide once again
responded to the cries of Haiti's workers for an increase in the minimum
wage.  President Aristide was committed to raising the minimum wage to 72
gourdes but after lengthy dialogue with the labor unions, domestic and
foreign employers doing business in Haiti, the international community,
interest groups, and the public and private sector, the bill that finally
went before Parliament raised the wage to 36 gourdes a day, which represented
US$2.40 at that time.


MOVEMENT TO
INCREASE THE MINIMUM WAGE

Recently, with the international rise in gas prices, the devaluation of the
gourde, and the Haitian government's inability to continue to subsidize the
gas prices for the nation, transportation costs have risen drastically in
Haiti.  The high cost of buses and public transport make going to work barely
worthwhile and a new debate has arisen for an increase in the 36 gourdes
minimum wage.

In January, in response to the increased gas prices, the Haitian government,
recommended that the minimum wage be raised to 72 gourdes (US$2.05).  A
dialogue has begun between the various sectors (labor unions, domestic and
foreign employers doing business in Haiti, the international community,
interest groups, and the public and private sector) to come to an agreement
on a proposed new minimum wage.  On February 7, 2003 President Aristide
announced consent on an increase to 70 gourdes.