Private groups support minimum wage measure.

Business leaders testify before the House Labor Affairs Committee in support of returning minimum wage authority to the Legislature.

By THE STAR STAFF

A coalition of Puerto Rico’s leading economic and business organizations reaffirmed their support on Wednesday for House Bill 1115 following their presentation during a public hearing of the House Labor Affairs Committee. The measure would dissolve the Minimum Wage Evaluation Commission created under Law 47-2021 and give the Puerto Rico Legislature the authority to determine future changes to the minimum wage. The bill does not modify the current minimum wage.

The organizations supporting the measure include the Made in Puerto Rico Association, the Puerto Rico Marketing, Industry and Food Distribution Chamber (MIDA), the Puerto Rico Chamber of Commerce (CCPR), the United Retailers Center (CUD), the Puerto Rico Manufacturers Association, the Retail Trade Association (ACDET), the Puerto Rico Bankers Association, the Puerto Rico Restaurants Association (ASORE), the Puerto Rico Hotel and Tourism Association, and the Puerto Rico Builders Association. Together, they argue that the measure is essential to protecting the island’s economic stability and reinforcing democratic decision‑making processes.

During the hearing, representatives emphasized that the Minimum Wage Evaluation Commission has suffered from chronic structural and governance issues. According to their testimony, the commission has never operated with its full seven members since its creation five years ago, and several appointments have already expired or are close to expiring. These gaps, they said, have resulted in major economic decisions being made by a small group of unelected individuals operating with limited quorum and insufficient representation.

MIDA Vice President Manuel Reyes Alfonso stressed that the organizations are not seeking to reduce the minimum wage but to ensure a fair and functional process.

“We do not advocate for a reduction in the minimum wage,” Reyes Alfonso said. “We simply agree that no commission can adequately reflect the balance our economy and democracy require. It is unfortunate that decisions impacting 100% of businesses—and therefore 100% of the population—are made by five people, with only one business representative and no elected officials. The law even allows the commission to operate without any employer representative and, although not the case now, it could also function without any worker representative.”

Puerto Rico Chamber of Commerce President Margaret Ramírez Báez echoed those concerns, highlighting the need for transparency and democratic legitimacy.

“The future of Puerto Rico requires responsible, coherent, and truly representative labor policy,” Ramírez Báez said. “Entrepreneurs, who are also workers, cannot be subject to decisions made by a commission lacking transparency, public hearings, and citizen participation. Constitutionally and ethically, these matters belong in the hands of the elected bodies that integrate economic policy across sectors.”

Other leaders pointed out that the commission’s structure fails to account for the immense diversity within the private sector. CUD President Ramón Barquín noted that labor cost changes affect small and large businesses in dramatically different ways.

“A business with two employees is impacted very differently from a multinational pharmaceutical company with thousands,” Barquín said. “A bakery has little in common with an agricultural enterprise. Oversimplifying these complexities leads to poor decision-making.”

ASORE President Sonia Navarro stressed the broad, undefined powers delegated to the commission, warning that the lack of clear guidelines poses risks to economic stability.

“This commission’s authority ranges from reviewing the minimum wage to issuing decrees affecting different sectors of the workforce,” Navarro said. “Without clear limits, this risks shifting responsibility to the private sector for challenges that should be addressed through broader public policy discussions.”

Made in Puerto Rico President Mateo Cidre added that decisions impacting employment, investment, and competitiveness should not be left to an incomplete, unelected body.

The coalition reiterated its full support for House Bill 1115 and urged lawmakers to continue advancing measures that bolster Puerto Rico’s economic development and social well-being. The organizations maintain that returning minimum wage authority to the Legislature ensures broader representation, public participation, and alignment with the island’s overall economic strategy.