STORY: Türkiye begins negotiations on 2025 minimum wage amid inflation concerns
SHOOTING DATE: recent footage
DATELINE: Dec. 11, 2024
LENGTH: 00:02:45
LOCATION: Ankara
CATEGORY: ECONOMY

SHOTLIST:
1. various of people on the streets, cashpoints, and shopping in Türkiye
2. SOUNDBITE 1 (Turkish): CANER AYGUN, Construction technician
3. SOUNDBITE 2 (Turkish): HAYDAR ENGIN, Barber

STORYLINE:

A tripartite commission of workers, employers, and government representatives began negotiations in Ankara on Tuesday to set Türkiye's 2025 minimum wage.
   
The discussions, set to conclude by Dec. 31, will impact approximately 9 million workers amid the country's ongoing economic challenges.

The current minimum wage of 17,002 liras (around 488 U.S. dollars) per month has been criticized by worker unions as insufficient against the backdrop of persistently high inflation. Official data shows annual inflation at 47 percent in November, lower than a peak of 75.5 percent in May but still well above sustainable levels.

SOUNDBITE 1 (Turkish): CANER AYGUN, Construction technician
"Workers have experienced a significant erosion of their purchasing power due to challenging economic conditions.
As a result, the ongoing cost-of-living crisis and rising prices are causing severe hardships for minimum wage earners.
Policymakers should take the necessary measures to prevent that a significant minimum wage hike impacts the inflation outlook."

SOUNDBITE 2 (Turkish): HAYDAR ENGIN, Barber
"The high cost of living is a serious burden in Türkiye and it seems to get worse.
Minimum wage earners have been crushed under rising prices.
Even if the minimum wage is increased by 100 percent, it doesn't mean that people will be better off.
Policymakers should concentrate on lowering the inflation level rather than hiking the minimum wage." 
  
Market expectations center on a potential 25 percent wage increase, though labor unions and workers demand more substantial adjustments to offset rising living costs.
   
Labor unions, such as TURK-IS, have underscored the urgent need for meaningful wage adjustments, noting the current minimum wage falls 2,828 liras below the hunger threshold of 19,830 liras required to support a four-person household.
   
Economists warn of potential trade-offs associated with wage hikes. A 25-percent increase could provide immediate relief but risks adding between 1.5 and 5 percentage points to annual inflation, according to preliminary estimates.
   
Ali Cufadar of Ankara's Economic Policy Research Foundation cautioned that raises exceeding 25 percent could undermine price stability and jeopardize the government's 2025 inflation target of 21 percent.
   
The International Monetary Fund has recommended targeted financial assistance for low-income households instead of broad wage increases, highlighting the complexity of addressing economic distress.

Xinhua News Agency correspondents reporting from Ankara.
(XHTV)