Minimum Wage Statement from Aegean Exporters

The minimum wage, which directly affects more than 7 million employees and their families in Turkey, increased by 2022 percent compared to January 100. Aegean Exporters' Unions Coordinator President Jak Eskinazi emphasized that an increase in the minimum wage would not be beneficial for any sector in an environment where purchasing power is decreasing day by day and is crushed by inflation. Jak Eskinazi said, “The rate of minimum wage workers in Turkey is more than 60 percent. In European countries, this figure is around 5% in some countries and 10% in some countries. Turkey is on its way to becoming a country of minimum wage earners. There is an employment crisis in the face of increasing expectations due to the increase in the minimum wage. While inflation in Turkey is 10 times higher not only in developed countries but also in the world average, we will see that it will peak even more after this hike. In less than 24 hours, food prices began to rise. Salaries are melting before they even go out of pocket.” said.

Pointing out that the minimum wage increased from $2021 in 318 to $455 today, Eskinazi said, “Exporters earn income in foreign currency. In order for our sectors to survive, we want the pressure on the exchange rate to be removed and a more balanced exchange rate system to be created. If it continues like this, we will not be able to meet the 2023 targets. When our exporters make cost calculations for incoming orders, they cannot receive orders. The cost of the minimum wage to the employer is around 13 thousand TL. All obligations other than salary must be met by the state.” said.

Jak Eskinazi said, “As exporters experiencing the coronavirus pandemic, the 10-month war between Ukraine and Russia, the economic uncertainty, the possibility of recession, the increase in energy costs, the loss of parity, and the increase in other inputs after the last hike, we are at a point where we cannot get out of the calculation. We lost the export advantage we gained due to the freight crisis and the pandemic due to the pressure on the exchange rate. We will look for these export figures a lot in the future. We anticipate that unemployment will increase further as a result of the lack of orders. The pressure on the exchange rate will increase imports and we will be in a position to look for the foreign exchange we need. Our aim should not be to save the day, but to prepare for the future with financial policies that will increase the welfare level by controlling inflation. It will be very difficult for businesses that export with this exchange rate to continue in 2023.” said.