Six business associations urge government not to raise minimum wage without comprehensive economic studies

ORANJESTAD — Six business organizations in Aruba (CUA, ATIA, AHATA, AFBA, ATSA and WAB) have sent a letter to Minister of Finance and Economic Affairs Geoffrey Wever, urging the government not to decide on raising the minimum wage to the subsistence level (bestaansminimum) without first conducting independent studies into the economic and social consequences.

The letter, dated October 29, 2026, follows a meeting with Minister Wever on October 14, during which the government asked the associations to submit a proposal for fiscal compensation to mitigate the impact of a wage increase.

INCREASING WAGES WITHOUT PROPER STUDIES IS IRRESPONSIBLE

The organizations acknowledge the need to improve the purchasing power of low-income residents but consider it irresponsible to introduce a substantial minimum wage increase without sufficient research.

According to the associations, EBA's Koopkrachtplan Aruba report primarily presents an inventory of possible measures without a comprehensive analysis of their consequences. They also criticize the possibility that the government could increase disposable income through tax relief on one hand while causing prices to rise on the other.

TEN AREAS OF RESEARCH BEFORE A DECISION

In their letter, the six organizations call for ten areas of investigation, including the number of people earning below the subsistence level, the impact on companies' wage structures, inflation risks, employment consequences and the potential growth of the informal economy. They also request an analysis by the International Monetary Fund (IMF) of the specific impact on Aruba, research into alternative ways of improving purchasing power and an assessment of fiscal compensation for businesses facing higher payroll costs. Another issue is how much additional revenue the government itself could collect as a result of a higher minimum wage.

CRITICISM OF POLITICAL DECISION-MAKING

The associations warn the government against making decisions based on emotions or short-term political popularity without fully understanding the actual consequences for the community. They propose that the government and business sector jointly agree on which independent organizations should conduct the studies to ensure impartiality and verifiable data. The letter concludes that any measure intended to improve purchasing power must be sustainable and take into account its impact on employment, businesses and Aruba's economy.

SIX REPRESENTATIVES SIGN THE LETTER

The document was signed by Frans Ponson of Comerciantenan Uni di Aruba (CUA), Danilo Werleman of the Aruba Trade & Industry Association (ATIA), Tisa LaSorte of the Aruba Hotel & Tourism Association (AHATA), Miriam Dabian of the Aruba Financial & Business Association (AFBA), Sulaika Kelly of the Aruba Timeshare Association (ATSA) and Fred Steegh of WAB. Through this joint position, the six organizations are putting pressure on the government to establish the true cost of the proposed measure, its consequences for businesses and its ultimate effect on the community's purchasing power before making a final decision on the minimum wage.