High salary floor can generate unemployment, says president of Fecomércio do Rio

in interview to CNN This Saturday (20), the president of Fecomércio in Rio de Janeiro, Antônio Florencio, said that an eventual rise in the wage floor of workers in the sector in the state could generate an increase in unemployment.

“If the market is strong, it hires labor with wages well above the minimum established. But if the market is not very good, legislation establishes a floor that is unrealistic and you generate unemployment”, he pointed out.

“When you artificialize market menisms, you create unemployment. What we have to work on is economic development and job creation, so that the market starts to practice salaries that are adequate to the reality we are living in”, she added.

Florencio also stated that, in Rio, wages without the minimum wage are much higher than those where there is legislation behind it.

“The base salary of supermarkets in Rio today is more than R$1,500 and, however, the minimum salary set by legislation in states that adopt this methodology does not reach R$1,420. The market operates in a much more real and effective way than any legislation that is put in place, because they do not take employability into account”, he concluded.

Source: CNN Brasil

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