On October 7, at the Presidential Palace, Labor Minister Rolando Castro met with the unions, which the president had agreed to, behind closed doors.
With the support of government-affiliated unions and Labor Minister Rolando Castro, Naib proposed to Bukele to plunder workers’ savings, worth $ 12.349 million to date and owned by contributors.
At a closed-door meeting at the Presidential Palace on October 7, the unions asked Buckell to withdraw the private pension system that has been in place since 1998, create a “solidarity fund” and increase pensions to 70% of the final salary. .
“Our proposal is to nationalize pensions, create a national autonomous social security agency, and retire with 70% of the salary we last quoted,” said Roswal Solarzano, secretary of the Judicial Branch (SITTOJ) labor union. A slogan to remove AFPs from the system.
“It is clear to us that what is being talked about is creating a solidarity fund,” the union member said.
Deprivation of pensions means that all the money of the savers goes into the hands of the state and is used for its expenses.
Mario Arvalo, general secretary of the Public Health Ministry (CICSEL) Employees’ Union, said on Thursday night, “Many people in public health who need to retire will not leave because their pensions are so low … they are waiting for that. Reform, you are going to give that change.” Said in the video.
Another of the unionists said: “I am already 62 years old and I do not have the courage to retire because I do not know what they are going to expel.”
Bukele said it was the most important meeting they would hold on pensions, to hear Bangel’s doubts and suggestions.
According to economist Luis Membrano, the meeting confirms the government’s intentions to nationalize pensions, which at the moment need more funding to support its financial spending.
It also shows the motives behind the reform: providing immediate benefits to those close to retirement, which has an impact on current contributors. “This is an immediate benefit to them, at the expense of future generations, they cannot retire,” he said.
The nationalization of pensions was further reinforced by the same statements by President Buckell that the amendment on September 15 guarantees that “hungry pensions” will no longer be paid, he says he is paying today.
The Salvadoran Association of Pension Fund Managers (Asafontos) responded to Buckell on the occasion that any change in the pension system must be taken from a technical point of view, with the participation of the majority of workers.
Notice of reform postponed
The proposal for the reform was submitted on October 15, but according to Buckell, they will have to wait a few more weeks.
According to Membrano, the announcement was delayed because it could be another reason for the protests this Sunday.
These protests will be held to condemn Bukele’s dictatorial decisions such as the imposition of judges and lawyers and the use of bitcoin.