Social Dialogue Protocol Aruba approved

From 9 July up to and including 20 August 2010, a Social Dialogue took place in Aruba. The Protocol was recently signed by all parties, including the Prime Minister and the Minister of Finance.

The process involved both unions (SDU and SEPPA) representing employees, as well as employers represented through Aruba Hotel & Tourism Association (AHATA), as well as the Aruba Trade & Industry Association (ATIA), San Nicolas Business Administration (SNBA) and the Chamber of Commerce.

A summary of the approved Protocol:

• introduction of investment allowance of 6% for locally bought products with a ceiling of AWG 20 million;
• committee to examine a fiscal reform, which reform should enter into effect on 1 January 2012;
• substantial decrease in old age pension benefits for Ministers and members of parliament;
• amendment of the government employees pension rights (APFA), assuring pensions are payable;
• solution for AOV deficits, including a.o. installation of a committee to determine a sustainable pension age and increase maximum premium income to AWG 65,000;
• temporary solution for AZV deficits, including a.o. commitments from AZV/ Government to look at cutting health costs and increase of AZV premiums by 2% (1% employer and 1% employee);
• agreement to determine core business of the government with corresponding job descriptions and job requirements in place;
• allowance for low-income employees (low income being AWG 1,542.90 up to AWG 2,500 per month) to restore purchasing power;
• committee to look at possibilities for a one-stop shop for all permits and licenses.