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Homologation of salaries in public companies applies to new positions after merger
Posted On 31 Oct 2018
Ecuadornews:
The homologation of salaries in public companies will be applied to the new positions that are built within the process of mergers that takes place in these companies. This was explained yesterday by Labor Minister Raúl Ledesma. In this way, such approval will not have to do with lowering salaries to current officials, but for new hires.
The minister explained yesterday that they plan to deliver a draft report on each of the companies next week (between Monday and Wednesday), which will establish a series of job eliminations and construction of new positions. At the moment, he said, progress has been made in the analysis of five companies, among which he named Yachay EP, Correos del Ecuador, Ecuador Estratégico and the own Company Coordinator of Public Companies (EMCO).
He explained that as has happened in the process of restructuring and merging some ministries; In the matter of public companies, the merger will be carried out, which implies that there will necessarily be duplicate charges that must be eliminated. He gave the administrative directions as an example.
Once the draft is approved, it will be sent to the respective directories of each company, to be applied.
The Minister of Finance, Richard Martinez, had announced the approval process in order to generate savings in the current expenditure of the State. According to the data of the Ministry, the average of salaries in the Executive Function (which includes the ministries) is $ 1,100 to $ 1,200, while in public companies the average is $ 1,600.
According to data from the Central Bank, the budget earmarked for salaries in the public sector, which is part of the General State Budget, reached $ 9,139 million in 2017. This is an important figure if one takes into account that in 2006 the salary expense was $ 2,581 million.
5 companies
They have already been analyzed so far to determine the merger process to take forward. (I)
