Archivo de ‘Economy’

Avianca has two weeks before pilots strike

Miércoles, marzo 26th, 2014

Avianca executives have until April 10th to reach an agreement in negotiations with the Colombian Civil Aviators Association (Acdac), which includes 419 of its 982 pilots; the group is asking for salary adjustments. Should they be unable to reach a deal, the general assembly will decide if it goes on strike or calls in arbitration.

The airline was forced to sit back down to discuss the issue after pilots abandoned talks back in October of 2013. Acdac was asking for a fixed 25 percent increase in salaries while Avianca offered a variable 11 percent tied to improvements in productivity.

Subway wants to get to 300 stores in Colombia

Miércoles, marzo 5th, 2014

The Subway chain hopes to open 100 new restaurants in Colombia in 2014, which would bring the total up to 300 all over the country. The first is expected to open sometime in March but which location that will be has yet to be announced; there are currently restaurants under construction in Bogotá, Medellín, Cartagena, Santa Marta, and Cali.

With the expansion, using the franchise model of business, Subway hopes to increase sales by 200-250 percent in 2014, similar to the growth achieved in 2o13.

The company considers Colombia to be the third market with most potential inLatin America behind Brazil and Mexico, and estimates that Colombia, in 10 to 15 years, will be among the top ten countries with the most Subway stores in the world.

Coffee production increased 40% in Colombia

Martes, marzo 4th, 2014

The National Coffee Growers Federation revealed that coffee production in Colombia for February was 874,000 60-kilo bags, which is a 40 percent increase compared to the same month in 2013.

So far this year production has already gone above 1,8 million bags, which is a 25 percent increase when compared to the same time period last year, when it was 1,5 million.

Coffee production for the past 12 months, between March of 2013 and February of 2014, is above 11,3 million bags, which translates into an increase of 38 percent compared to the 8,1 million bags produced in the previous 12 months.

The spike in production is also reflected in exports, which increased 36 percent with 976,000 60-kilo bags to satisfy growing demand for high quality Colombian coffee around the world.

Colombia is third economy in Latin America

Viernes, febrero 28th, 2014

Colombia has surpassed Argentina and positioned itself as the third most important economy in Latin America for 2013, according to London-based macroeconomic research company Capital Economics. The firm estimated that Colombia’s GDP last year was 347,000 million dollars, while Argentina’s was 337,000 million.

Colombia is now considered the third strongest economy in the region, behind only Brazil and Mexico.

Cost of living increased 0,34% in Medellín

Jueves, febrero 6th, 2014

According to the Consumer Price Index (CPI) revealed by Dane, Medellín is the eighth out of 24 cities measured, with the lowest inflation in the first month of 2014. The increase in basic household costs is below the national increase of 0,49 percent, which is above the 0,30 percent registered in January of 2013.

As far as prices related to housing, Medellín’s 19 percent  is in line with the national rate of 0,20 percent. The good news for residents of Antioquia is that food costs were almost half of the national rate, 0,82 percent vs. 0,49 percent. What increased least was clothing, education, and recreation; variation was moderate in terms of transportation.

Coffee growers announce possible strike for April

Lunes, enero 27th, 2014

On Monday the delegates from Dignidad Cafetera (Dignity for Coffee Growers) approved resuming talks with the National Government to find solutions to what the organization says is the Government’s failure to uphold its end of deals agreed to last year.

The group feels three months will be enough time to reach satisfactory conclusions but, should negotiations not be successful, they announced a possible strike that would begin on April 28th, 2o14.

A group of delegates will sit down with government representatives to discuss issues like fertilizer costs and PIC (Support for Coffee Growers’ Income Program, for its acronym in Spanish) payments, among others.

Colombiatex is expecting customers from 28 countries

Miércoles, enero 8th, 2014

Colombiatex, the year’s first trade show organized by the Institute for Fashion and Exports (Inexmoda, for its Spanish acronym), is expecting buyers from 28 countries looking to do business with Colombian textile manufacturers and other industry producers. The countries include Spain, India, Brazil, the United States, Pakistan, Peru, and Turkey, among others.

The event is scheduled to begin on January 21st in Medellín’s Plaza Mayor with over 500 exhibitors arriving from 15 countries who will negotiate approximately 150 million dollars in deals.

“We’ve decided that the main guest is the Pacific Alliance. We want to strengthen that trade bloc, I think we still have to understand it more (…) the markets in Mexico, Chile, Peru, and Colombia are very important to trade within the bloc. We will be holding conferences to alert business executives about the importance of the issue,” said Carlos Eduardo Botero, president of Inexmoda. Brazil also confirmed a runway show that will include designs by important fashion personalities of that country.

Some 750,000 international buyers are expected to attend Colombiatex, as well as around 8500 national customers.

A product that will be featured prominently this year is denim, and the show will set aside an entire day for people to come dressed in the popular textile used to make anything from jeans to outerwear and accessories.

National unemployment rate goes down to 8,5 percent

Lunes, diciembre 30th, 2013

The average rate of unemployment in Colombia decreased by 0,7 percent for the eleventh month of 2013 compared to the same period in 2012, which means that 150,000 fewer people were unemployed, according to the National Department of Statistics (Dane)

In November, therefore, there were 21,4 million people with jobs while 1,9 were looking for employment, which translates into the lowest unemployment rate for the month of November since 2003.

Medellin and its Metropolitan Area, meanwhile, registered an unemployment rate of 9,6 percent for the quarter that includes September, October, and November, compared to 11,4 percent in the same quarter in 2012. That means there are 31,000 fewer unemployed people despite the fact that 189,000 are still looking for work. For the second consecutive month, however, Medellin remained as one of the nine cities with single digit unemployment rates.

Minimum wage salary will increase 4,5%

Jueves, diciembre 26th, 2013

The Labor and Salary Policies Committee agreed on a 4,5 percent increase to the national minimum wage salary, which is below the amount workers were asking for but more than employers were hoping to pay.

For the nearly one million Colombians who earn minimum wage, this development will mean only 26,527 pesos more each month but it’s also more than twice as much as the rate of inflation projected by the National Department of Statistics (Dane).

Minimum wage will be determined by decree

Lunes, diciembre 16th, 2013

The minimum wage salary in Colombia for 2014 will be decreed by the National Government after negotiations in the Labor and Wage Policies Committee failed to end in agreement on what next year’s increase should be.

Despite the fact that business executives raised their proposal from 3,8 to 4 percent, an increase of 23,580 pesos,  workers’ unions remained firm on their request for a 6 percent increase, equal to 35,370 pesos.

The parts will send their formal proposals to President Juan Manuel Santos and the Government will decide either to summon a new meeting and attempt reaching a consensus decrees the minimum salary for next year on its own.

Business executives, however, do not foresee sitting down to negotiate again.

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