PROMOTING INVESTMENT AND INCREASING THE MINIMUM WAGE 

February 7, 2003

Business Opportunities in Haiti

  ·         On April 8, 2002, President Aristide and President Mejia inaugurated the site of an industrial free zone to be constructed on the Haitian side of  their shared Haitian/Dominican border. This free zone promises to bring 1,500 new jobs to the area in the project’s first phase and 8,000 new jobs by the project’s completion. 

  ·         Less than two weeks later, Haiti’s parliament ratified a $40 million hotel project with a U.S.-based group of investors planning to build a Hilton  Hotel in Haiti. This landmark hotel, “Hilton Haiti”, will be the only hotel in Haiti operated by an international hotel group.

  ·         Upon his return from an official State visit to the Republic of China Taiwan last July, President Aristide received business delegations from Taiwan ready to survey investment possibilities in Haiti. One group signed a preliminary commitment to open an apparel factory in Haiti, an investment valued at $6 million.

  ·         The Government of Haiti supports a bill currently before the U.S. Congress that would extend trade benefits under the African Growth and Opportunity Act, to Haiti.

History of Minimum Wage Increases

After President Aristide was inaugurated in 1991 he addressed the growing movement for a raise in the minimum wage.  At the same time that President Aristide was campaigning for increased wages, he was ousted through a coup d'etat. In 1994, after democracy was restored to Haiti, President Aristide once again responded to the cries of Haiti's workers for an increase in the minimum wage. President Aristide was committed to raising the minimum wage to 72 gourdes but after lengthy dialogue with the labor unions, domestic and foreign employers doing business in Haiti, the international community, interest groups, and the public and private sector, the bill that finally went before Parliament raised the wage to 36 gourdes a day, which represented US$2.40 at that time. 

Movement to Increase the Minimum Wage

Recently, with the international rise in gas prices, the devaluation of the gourde, and the Haitian government's inability to continue to subsidize the gas prices for the nation, transportation costs have risen drastically in Haiti. The high cost of buses and public transport make going to work barely worthwhile and a new debate has arisen for an increase in the 36 gourdes minimum wage. In January, in response to the increased gas prices, the Haitian government, recommended that the minimum wage be raised to 72 gourdes (US$2.05). A dialogue has begun between the various sectors (labor unions, domestic and foreign employers doing business in Haiti, the international community, interest groups, and the public and private sector) to come to an agreement on a proposed new minimum wage. On February 7, 2003 President Aristide announced consent on an increase to 70 gourdes.  

 

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