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The immediate increase in wages, the head of Confindustria reveals the serious consequences for business
Written by SOT.COM.AL 30 Maj 2023
Gjergj Buxhuku, the head of Konfindustria, stated that the moves to increase wages were made without performing the appropriate analyzes for the impact it will have on businesses, adding that any immediate cost change can go as far as the goods or services becoming non-competitive.
I'm afraid and based on the information about when the moves to increase salaries were made, no analysis was done. Analysis in the sense of what will be the costs that businesses will have. It is not the job to put businesses in front of the fait accompli. The problem is that you have to calculate what the consequences will be on the end products. The problem in Albania is the lack of labor force and the mandatory demand for salary increases. It is the great pressure that is being created for the business. Analyzes were missing. These actions came as political decisions to be made before the elections. The consequences are not calculated, it goes with the idea that the business holds, but it is not so. Accounts are played by a thread.Any immediate cost changes can spill over to the point where your product or service is uncompetitive. Competition is first. The pressures have been great, pressure to increase the minimum wage several times in a short time. Has anyone calculated how much the final products will cost?
The opening of the borders would inevitably lead to a time when the domestic labor force would explode and should have been preceded by investing in technology. On the other hand, we must take into account that many sectors of the economy, those that have weight for export, are sensitive industries.