Business groups insist on repeal of minimum wage evaluation commission.

Manuel Reyes, executive vice president of the Food Marketing, Industry and Distribution Chamber

By THE STAR STAFF

Several business organizations on Monday insisted on the elimination of Puerto Rico’s Minimum Wage Evaluation Commission.

They argued that the commission, in its current form, is “seriously biased,” lacks adequate representation from elected officials and employers, and operates with a reduced quorum. The groups also questioned the legitimacy of labor representation on the panel, saying unions are nearly nonexistent in the private sector and that the law explicitly excludes the government from its application.

“Right now, the debate should focus on the body that has been handed this power. What is at stake is the model of economic governance we want for Puerto Rico’s future,” said Manuel Reyes, executive vice president of the Food Marketing, Industry and Distribution Chamber (MIDA by its acronym in Spanish), in a written statement. “The commission was a bad idea from the start, and that has become clear after five years. It has never had its full seven commissioners, yet it was allowed to operate with five. That means a simple majority of three unelected people holds enormous power over the entire economy. And those three come from government and government unions, where the law does not apply. In the private sector, there are virtually no unions. The power granted is neither legitimate nor democratic.”

“This commission does not have the essential elements to manage an agenda that is so sensitive for the country,” said Sonia Navarro, president of the Puerto Rico Restaurant Association (ASORE). “Its decisions can be harmful for certain industries because they affect everything from day-to-day operations and specific input costs to staffing levels, and they ultimately impact pay scales between employees and supervisors.”

The organizations called for abolishing the commission and for “opening a serious process toward a new mechanism -- genuinely participatory, transparent and capable of earning public trust.”

They said Puerto Rico’s economic future depends on wage policies that reflect productive reality, are grounded in sound economic analysis, and protect the island’s well-being and competitiveness.

The group comprises ASORE, the Puerto Rico Hotel and Tourism Association, and the Builders Association. The coalition includes, among others, the Association de Hecho en Puerto Rico; Puerto Rico Chamber of Food Marketing, Industry and Distribution; Puerto Rico Chamber of Commerce; United Retailers Center; Puerto Rico Manufacturers Association; Retail Trade Association; Banks Association of Puerto Rico; and MIDA.

Opponents of the measure argue that dismantling the commission would effectively freeze the minimum wage and halt ongoing studies required by law, including evaluations for agricultural, tipped, and tax‑exempt workers. Labor representatives insist that the commission was created precisely to prevent long periods without wage adjustments, noting that when the Legislature controlled the process in the past, Puerto Rico went nearly 25 years without a significant increase. They describe the commission as an independent, multi-sector body designed to provide scientific, data-driven analysis insulated from political pressure.

Critics also contend that the repeal effort is being driven by business lobbying rather than economic evidence, pointing out that the bill advanced without public hearings and without allowing members of the commission itself to testify. Economist Iyari Ríos González, the labor representative on the panel, said she requested participation in hearings three times and received no response, calling the process “premature” and lacking transparency. Labor groups warn that eliminating the commission would remove a key safeguard for more than 200,000 low-wage workers, leaving future wage decisions vulnerable to political delays and weakening the island’s ability to evaluate the real cost of living.