Venezuelan President Nicolas Maduro signing the adjustments in the bonuses that Venezuelan workers will received since May 1, 2023, representing the equivalent of $70 US dollars in addition to their wages. Photo: Presidential Press.
The president of Venezuela, Nicolás Maduro, announced through a video that Venezuela would increase citizens’ “warfare” benefits to the equivalent of 30 US dollars (USD) a month and their food credits (Cestaticket) to the equivalent of USD 40/month. This will result in workers’ total monthly benefits reaching the equivalent of USD 70/month in addition to their regular wages, which have been heavily impacted by the US and European economic warfare on socialist Venezuela and the consequent economic crisis.
The adjustment was announced on Tuesday, May 2, by President Maduro. A day earlier, on International Workers’ Day, President Maduro had announced that the warfare bonus would reach the equivalent of USD 20/month. The bonuses will continue to be issued in bolívars indexed to the US dollar at the rate set by the Central Bank of Venezuela (BCV). The warfare benefit thus rises USD another 10/month beyond what was announced on Monday. This was one of a series of nine measures announced by the Venezuelan head of state on International Workers’ Day.
The “warfare bonus” is a provision, issued monthly to public workers and pensioners, which began to be granted in January 2023 due to the economic warfare and illegal coercive measures—euphemistically referred to as “sanctions”—that Venezuela is facing and that have severely limited the nation’s income and, therefore, the salary of public employees. The bonus is paid in bolívars and, as it is not part of the salary, it does not affect other benefits such as retirement or year-end bonuses. In January, February, and March, public employees were paid the equivalent of USD 30 each month, and in April, USD 44.
In the video, President Maduro thanked the workers of Venezuela for the “tremendous effort” they have exerted in the midst of a brutal economic war. The illegal economic measures against socialist Venezuela, designed to suffocate the economy and restrict Venezuelans’ access to food and medicine, have resulted in hundreds of thousands of deaths and untold suffering. The economic war began in earnest when US President Obama declared Venezuela an “unusual and extraordinary threat” to US security in March 2o15, and intensified when the US recognized Juan Guaidó as the leader of Venezuela after Guaidó declared himself president in a Caracas plaza in January 2019.
Although Venezuela lost an estimated 99% of its foreign income revenue through the economic measures imposed on the nation, it has been slowly rebounding since 2022, registering one of the most encouraging rates of economic growth in Latin America. The increased “warfare” benefits are viewed as an indicator of a slow but steady improvement in Venezuela’s economy, largely due to the restoration of its oil industry, in part thanks to the efforts of nations such as China, Russia, and Iran that have dared to circumvent the blockade.
¡Buenos Días Venezuela!
Amanecimos firmando el decreto de los aumentos del Cestaticket a 40 $ y del Bono de Guerra Económica para que llegue a 30 $ mensuales, bajo el concepto de la indexación, para un total de 70 $ más el salario. Es un esfuerzo tremendo en defensa del salario… pic.twitter.com/oVI55ITAG4
— Nicolás Maduro (@NicolasMaduro) May 2, 2023
In the video, President Maduro signed the decree to increase the food and warfare benefits for all workers. The adjustment will be published in the Official Gazette shortly. “The concept of indexation is applied to all workers,” Maduro noted.
In his speech on International Workers’ Day, the president stated that the new measures must be taken step by step, taking into account the blows that the country has received due to the illegal sanctions imposed by the US as well as the damages caused by recently discovered corruption cases. He explained that he wanted the country to continue receiving more income, so that the government could do more to provide social programs and public services. President Maduro also pointed out the importance of cleaning up all state companies, increasing productivity, and restoring the purchasing power of public workers within the framework of existing collective agreements.
The food bonus, increased on May 1 to USD 40, had remained at 45 bolívars (Bs.) per month since March of 2022, equivalent today to USD 1.80.
The president did not announce an increase in the monthly minimum wage, which has remained at Bs. 130 (USD 5.20) since March 2022. Nor were any changes to payments issued to pensioners reported. Since January, pensioners have received a USD 20/month warfare bonus (issued in bolívars).
President Maduro Greets Workers at May Day March, Announces Bonuses Increase
Comparisons
• The announced minimum monthly income (equivalent to USD 75) increased 92% if we compared to March 2022, when the minimum monthly income was equivalent to USD 39 (Bs. 175, with the official exchange rate of Bs. 4.51). This is valid only for those who earn minimum wage.
• If we compare it with the income that a worker received in April 2023, there was an increase of 53% in April, and another USD 75 in May.
• Many workers have expressed their strong objections on social media to the fact that the monthly has been limited to “bonuses,” and does not improve the actual monthly wage. President Maduro has replied that these are measures for the current conditions and the increase in income and production is expected to return to normal in the future.
Nine-point plan
During the event, the deputy to the National Assembly and president of the Bolivarian Socialist Central of Workers, Wills Rangel, presented President Nicolás Maduro with a nine-point plan to improve workers’ conditions:
1) On the subject of benefits, Maduro suggested that the president of PDVSA, Pedro Tellechea, assign an “oil clump” (50 oil wells) in Monagas state to the National Benefits Fund. He indicated that all the oil produced in that clump will be sold, with the profits being contributed to the benefits fund. La Macolla currently produces 9,500 barrels per day, but it is expected to produce 20,000 barrels per day shortly. In addition, new clumps will be prepared to allocate 100,000 barrels per day to the benefits fund. Tellechea assured President Maduro that these are war measures that are being taken, but that sooner or later, all the labor rights of all Venezuelans will be restored.
2) An urgent tax policy that “imposes taxes and obligations on the profits of international oligopolistic capital.” In this regard, President Maduro pointed out that he has asked the National Assembly to carry out a tax reform that allows more income to be obtained and that taxpayers with higher profits pay more.
3) Maduro asked Vice President Delcy Rodríguez to find formulas to financially leverage the savings bank system “to turn them into a mechanism for recreation and tourism.”
4) Regarding the Digital Bank of the Working Class, approved last year to support savings banks, Vice President Delcy Rodríguez noted that currently it is in technological testing, but ty August, the bank will be available and working.
5) Maduro added that through the Bricomiles an effort will be made to restore the facilities of the Venezuelan Institute of Social Security (IVSS) and IPASME (Institute of Welfare and Social Assistance for the Personnel of the Ministry of Education, which provides healthcare to teachers and workers of this ministry) at the national level. The Bricomiles (Community-Military Brigades for Education and Health) have carried out work restoring, maintaining, and improving schools and health centers with the support of communities and military personnel.
6) Regarding the proposal to “activate new collective bargaining agreements in public administration and adapt them to a new stage to recover workers’ wages,” President Maduro agreed while indicating that this will occur gradually as the country recovers from the damage caused by sanctions and corruption.
7) President Maduro approved the proposal to reform the law that governs the Housing and Habitat Bank, incorporating base workers on its board of directors and allowing the restructuring of a national housing plan for workers.
8) President Maduro also approved that INCES (the National Institute for Socialist Educational Cooperation, which provides training and courses to workers) be transferred from the Ministry of Education to the Ministry of Social Labor Process.
9) The final point dealt with the adjustments to workers’ warfare and food bonuses.
(Alba Ciudad) by Luigino Bracci Roa with Orinoco Tribune content
Translation: Orinoco Tribune
OT/JRE/SL
blaorinoco 5.3.23. 11:53 am
