The private sector speaks with one voice on the urgent need to eliminate the Minimum Wage Review Commission
Business leaders emphasize that the issue is not the minimum wage itself, but rather who has the authority to decide, warning that a minority lacking proper private-sector representation should not control decisions that impact the entire economy.
A dozen private sector organizations in Puerto Rico have once again joined forces to demand the elimination of the Minimum Wage Review Commission, questioning its legitimacy, impartiality, representativeness, and ability to make decisions that directly affect the island’s economic and social well-being. This collective effort responds to the urgent need to establish transparent, balanced, and democratic mechanisms for determining economic policy.
The coalition—composed of the Asociación Hecho en Puerto Rico, Cámara de Mercadeo, Industria y Distribución de Alimentos de Puerto Rico (MIDA), Cámara de Comercio de Puerto Rico, Centro Unido de Detallistas (CUD), Asociación de Industriales de Puerto Rico, Asociación de Comercio al Detal (ACDET), Asociación de Bancos de Puerto Rico, Asociación de Restaurantes de Puerto Rico (ASORE), Asociación de Hoteles y Turismo de Puerto Rico, and the Asociación de Constructores de Puerto Rico—maintains that the central concern is not the minimum wage itself, but rather who is entrusted with the authority to make economic decisions that affect workers, businesses, consumers, and the country’s overall development.
The organizations stress that the Commission, in its current form, is heavily biased, lacks adequate representation from elected officials and employers, and operates with a reduced quorum. They also question the representative legitimacy of labor unions, given that unions are virtually nonexistent in the private sector and that the law expressly excludes government employees from its application.
“At this moment, the debate should focus on the body that has been granted this power. What is truly at stake is the model of economic governance we want for Puerto Rico’s future. The Commission was a flawed idea from the very beginning, something that has become increasingly evident over the five years since its creation. It has never had all seven commissioners appointed, yet it has been allowed to operate with only five. This creates the serious circumstance in which a simple majority of three unelected individuals holds enormous power over the entire economy of the country. To make matters worse, those three individuals come from government and public-sector union environments, where the law does not even apply to them. There are virtually no unions in the private sector. Therefore, the power granted to them is neither legitimate nor democratic,” stated Manuel Reyes, Executive Vice President of MIDA.
Representatives of the organizations further emphasized that the Commission’s current provisions allow decisions to be imposed without taking into account differences among industries, company sizes, or local economic conditions—potentially resulting in job losses, higher prices, and increased pressure on small businesses and workers.
Sonia Navarro, President of ASORE, highlighted the Commission’s broad powers, which extend beyond the general minimum wage and include the authority to approve special decrees for tipped employees, agricultural minimum wage regulations, and even the classification of exempt employees.
“This Commission lacks the fundamental elements necessary to manage such a sensitive national agenda. Its decisions can be devastating for specific industries because they impact everything from operational costs and raw materials to workforce structures, ultimately affecting pay scales between employees and supervisors,” she stated.
“We all want better wages for our people, but the reality is that wages do not increase through decrees or bureaucratic structures disconnected from economic reality. Wages rise when the economy grows, jobs are created, businesses compete for top talent, and Puerto Rico becomes an attractive place to invest and do business. The Legislative Assembly itself approved the latest minimum wage increases, while the Commission has remained incomplete for the last five years and still retains broad authority to make decisions that affect the entire economy. Puerto Rico needs fewer obstacles and more action to move its economy forward,” added Mateo Cidre, President of Hecho en Puerto Rico.
The leaders also denounced the waste of public funds on costly and duplicative studies. Dr. Ramón Barquín, President of CUD, recalled that during a recent public hearing it was revealed that the Commission had spent $500,000 on a study that essentially consolidated economic data already produced and published by the Puerto Rico Planning Board and the Government of Puerto Rico itself. They also referenced studies conducted by the government on this issue in 2017, 2018, and 2023.
“This completely undermines the argument that one of the Commission’s strengths lies in its so-called experts. Given Puerto Rico’s financial situation, it is inconceivable that such contracts can be justified merely to inform these supposed experts using data the government already produces to analyze a wage increase that had already been legislated,” he said.
Margaret Ramírez, President of the Puerto Rico Chamber of Commerce, argued that:
“The Minimum Wage Review Commission, as currently designed and operated, is a mechanism lacking balanced interests and adequate representation. It does not allow participation from the various sectors affected by its determinations. We cannot permit an issue as important to Puerto Rico’s social and macroeconomic development as wage policy to remain in the hands of a minority that does not operate within the private sector, whose appointments have expired, and which lacks institutional balance.”
“We recognize and defend the need for competitive and fair wages for all workers; however, any public policy must strike a balance between protecting workers and creating conditions that allow businesses to sustain and create jobs while encouraging investment and competitiveness. Without immediate action, the Commission will continue to remain disconnected from the realities faced by businesses and workers,” she concluded.
Lastly, the group believes it is necessary to clarify the public record regarding the position of the Department of Labor.
“Contrary to what some have attempted to project, during the public hearing and in subsequent statements, the Department clearly expressed that it recommends limiting the Commission’s role to studying the issue rather than making final determinations, as originally proposed in the 2021 legislation,” added José González, President of ACDET.
The organizations are calling for the elimination of the current Minimum Wage Review Commission and for the establishment of a serious process toward a new mechanism that is genuinely participatory, transparent, and capable of generating public trust. They believe Puerto Rico’s economic future depends on wage policies that respond to productive realities, are grounded in sound economic principles, and guarantee the country’s well-being and competitiveness.
Media contact:
Karen Garnik, APR, Fellow PRSA – 787-502-2424
karen@globalvisioncomms.com
Isadora Hernández- 787-310-3807
isadora@globalvisioncomms.com
mailto:isadora@globalvisioncomms.com