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Unions linked to Bukele propose confiscation of workers' savings

Unions linked to Bukele propose confiscation of workers’ savings

The President met behind closed doors with the unions approved by the Minister of Labour, Rolando Castro, on October 7 at the Presidential House.

Government-linked unions and with the support of the Minister of Labor, Rolando Castro, have proposed to Knepp Bokil confiscation of workers’ savings, which so far total $12.349 million and are held by shareholders.

At a meeting held behind closed doors at the presidential residence on October 7, these unions asked Bukele to abolish the special pension system in force since 1998, create a “solidarity fund” and increase the pension to 70% of the last salary. .

Roswal Solorzano, Secretary of the Judicial Branch Workers’ Union (SITTOJ), who publicly asserts: is a slogan to remove the AFP from the system.

Can I withdraw my retirement pension savings before reaching retirement age?

The union member added, “We are clear that what is being talked about is the establishment of a solidarity fund.”

The forfeiture of pensions means that all the savers’ money will go to the state to be used for its expenditures.

“A lot of public health workers who should retire, they are not leaving because their pension is too low … they are waiting for that. The reform, this change that you are going to introduce” Mario Arevalo, Secretary General of the General Union of Public Health Employees (SEGISAL) said. , he said, in a video posted by Bukele on Thursday night.

Presidential photo

“I am 62 already and I don’t have the courage to retire because I don’t know what they will get out of,” said one of the unionists, who showed his full support for the government to “take back” money from pensions “even against the people of the international community.”

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Bukele said this was the most important meeting they would have on the topic of pensions, to hear contributions, doubts and suggestions.

Changes to the constitution include the nationalization of pension savings

For economist Luis Membrino, this meeting confirms the government’s intentions to nationalize pensions, at a time when more funding is being sought to support its level of spending.

It also illustrates the intentions behind the reform: to give immediate benefits to those about to retire, despite the fact that this means an impact on existing shareholders. “It is an immediate benefit to them at the expense of future generations who will not be able to retire,” he said.

The nationalization of pensions was reinforced by the same statements made by President Bukele, who said on September 15 that this amendment would ensure that “hunger pensions”, such as those he says are paid today, are not paid.

The Salvadoran Association of Pension Fund Managers (Asafondos) responded to Bukele on that occasion that any change to the pension system should be taken from a technical point of view and involve the majority of workers.

Fix announcement postponed

The proposal for this fix was due to be presented on October 15, but according to Bukele, they will wait a few more weeks.

In Membrinho’s opinion, the announcement was postponed because this would mean one more reason to fuel the protests on Sunday.

The protests will be held to denounce Bukele’s dictatorial decisions such as imposing judges and prosecutors and using Bitcoin, among others.