Private Sector Organizations Support Maintaining the Current Minimum Wage but Call for the Legislative Assembly to Regain Authority to Set Future Changes
Asociaciones ven necesario derogar la Ley 47-2021 y devolver el proceso democrático y representativo a los funcionarios electos para proteger la economía y garantizar los empleos.
March 11, 2026, San Juan, P.R. — Following the presentation of their testimony at the public hearing of the House of Representatives’ Labor Affairs Committee, the leading organizations representing Puerto Rico’s economic sector — the Hecho en Puerto Rico Association, the Puerto Rico Chamber of Marketing, Industry and Food Distribution (MIDA), the Puerto Rico Chamber of Commerce (CCPR), the United Retailers Association (CUD), the Puerto Rico Manufacturers Association, the Retail Trade Association (ACDET), the Puerto Rico Bankers Association, the Puerto Rico Restaurant Association (ASORE), the Puerto Rico Hotel and Tourism Association, and the Construction Association — reaffirmed their support for House Bill 1115. The bill does not alter the current minimum wage but seeks to repeal the Commission created by Law 47-2021, returning to the Legislative Assembly the authority to establish future changes to the minimum wage in Puerto Rico. This measure is viewed as essential to safeguarding the economy and strengthening democratic processes in governmental and economic decision-making.
During the public hearing, it was highlighted that the Minimum Wage Review Commission created by Law 47 lacks adequate representation and operates with insufficient quorum, which has resulted in decisions of significant economic impact being made by a small number of unelected individuals. It was also noted that, five years after its creation, the Commission has never had its full seven members appointed, and some of the appointments that were made have already expired or are close to expiring. This situation further aggravates the governance crisis and limits the Commission’s ability to fulfill its original purpose.
MIDA Vice President Manuel Reyes Alfonso, Esq., stated that:
“The undersigned associations are not advocating for a reduction of the minimum wage. We simply agree that no Commission can adequately reflect the minimum balance that our economy and democracy require. It is unfortunate that decisions impacting 100% of businesses — and therefore 100% of the population — are made by a group of five individuals where there is only one business representative and no elected official. Even worse, the law allows for the possibility that the Commission could operate without any employer representative and, although that is not currently the case, it could even function without any worker representative. We are confident that if that were the case, those who currently defend this Commission would be calling for its repeal.”
The President of the Puerto Rico Chamber of Commerce, Margaret Ramírez Báez, Esq., added that:
“Puerto Rico’s economic future requires responsible, consistent, and truly representative labor management. Business owners, who are also workers, cannot be left at the mercy of decisions made by a Commission whose processes lack transparency, public hearings, and citizen participation when dealing with such an important and consequential matter as the minimum wage. What is correct and constitutional is for bodies elected by the people to address these issues in an integrated manner with the Island’s economic policy. The duplication of structures, overregulation, and lack of coherence in public policy ultimately affect the creation of more and better employment opportunities for our workers.”
According to the organizations, the Commission created by Law 47 is not an appropriate mechanism to make these determinations. Therefore, they prefer that elected officials, through democratic and participatory processes, decide on future changes to the minimum wage and other policies that directly impact the economy and the well-being of citizens.
“Decisions that affect employment, investment, and Puerto Rico’s competitiveness should not rest in the hands of an incomplete commission of unelected individuals. That type of public policy should be discussed through the democratic process and with the participation of all sectors of the economy,” said Mateo Cidre, president of Hecho en Puerto Rico.
For Sonia Navarro, president of the Puerto Rico Restaurant Association, it is important to consider the breadth of authority delegated to this Commission.
“This Commission may have a broad scope, from reviewing the minimum wage to issuing decrees that apply to different segments of the working class. All of this, without clear guidelines or defined limits, represents a risk of continuing to transfer to the private sector challenges that require a broader public policy discussion to achieve a fair and reasonable scenario for everyone. At the end of the day, what is not transformed is transferred.”
For his part, Dr. Ramón Barquín, president of the United Retailers Association (CUD), emphasized the enormous differences among businesses depending on the size and sector of each company, meaning that even if the two business sector representatives were appointed, they would not be sufficient.
“The impact of changes to labor cost structures for a business with two employees is dramatically different from that of a multinational pharmaceutical company that may employ thousands. Likewise, a bakery has little in common with an agricultural enterprise. Complex issues must be addressed as such. Ignoring these complexities leads to poor decision-making.”
Finally, the undersigned associations reiterated their support for House Bill 1115 and called on the Legislature to continue promoting measures that benefit all sectors of Puerto Rico, thus ensuring the island’s economic and social development.
Media contact:
Karen Garnik, APR, Fellow PRSA – 787-502-2424
karen@globalvisioncomms.com
Isadora Hernández- 787-310-3807
isadora@globalvisioncomms.com
Wilnelia Dávila – 787-547-0282
wdavila@prma.com