Unions linked to Bukele propose confiscation of workers’ savings

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

Unions linked to the government and with the backing of Labor Minister Rolando Castro have offered Knepp Bokil the confiscation of workers’ savings, which so far stand at $ 12.349 million and are held by shareholders .

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

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

Can I withdraw my retirement savings before I reach retirement age?

The trade unionist added: “We are clear that what we are talking about is the creation of a solidarity fund.

Forfeiture of pensions means that all savings money goes to the state to be used for its expenses.

“Many public health workers who should retire, they are not leaving because their retirement is too low … They are waiting for that. The reform, this change that you are going to introduce”, declared Mario Arevalo, secretary general of the General Union of Public Health Employees (SEGISAL), he said, in a video shared by Bukele on Thursday evening.

presidential photo

“I am already 62 years old and I do not have the courage to retire because I do not know what they will come out of,” said one of the trade unionists, who showed his full support for the government “for take back “pension money. “even against the people of the international community”.

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

Changes to the constitution include 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 offer immediate benefits to those about to retire, despite the fact that this means an impact on existing shareholders. “It is an immediate advantage for them to the detriment of future generations who will not be able to retire,” he said.

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

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

Deferred patch announcement

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

In Membriho’s view, the announcement was postponed as it would mean more reason to fuel protests on Sunday.

The protests will take place to denounce Bukele’s dictatorial decisions such as the imposition of judges and prosecutors and the use of Bitcoin, among others.

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