Tripartite concertation and the defense of real wages in Uruguay

The conclusion of wage rounds in the Consejos de Salarios, with real raises of 1.8%, confirms the strength of Uruguay's labor institutions in reconciling wage increases with inflation targets of 4.5% a year.

Institutionalized tripartite dialogue prevents the erosion of workers' purchasing power and sustains demand in domestic commerce.

Social concertation among the state, unions and employers shows that it is possible to guarantee decent incomes for the working class without triggering inflationary spirals.

Uruguay could serve as an example for the region when it comes to wage agreements.