Anggy Polanco and Mayela Armas

CARACAS/SAN CRISTOBAL – Venezuela’s shift towards the U.S. Dollar is increasing inequality among its workers in public and private sectors. Workers paid in foreign currencies have greater buying power, while those who are paying in dollars face prohibitive costs, economists, and pensioners said.

Since President Nicolas Maduro released economic controls, foreign currency usage has increased in South America. This has helped some companies, but inflation of the bolivar is still at 222%. There has also been uneven recovery.

The most affected are state employees whose salaries are paid in bolivars, with sporadic increases. According to Venezuelan Finance Observatory (an independent economic research company), at least 63% salaries in the private sector are paid using dollars.

Seyyerchacon, a 43 year-old registered nurse at San Cristobal’s public hospital, said “We have suffered from low wages for some while.”

Chacon stated, “I don’t have enough money to change the oil in our car,” earning 250 bolivars per mois, which equals to approximately $55.

Low wages led to public workers and retired people in OPEC countries to protest weekly for higher pay.

According to the Venezuelan Observatory of Social Conflict, 700 protestors took place in the first quarter of this year, which is 27% more than the period of 2021.

“The hyperinflation responsible for today’s large transactions in dollars, which have allowed a slight recovery in some activities, has also deepened the differences between private sector and public sector salaries,” said Omar Zambrano, director of local research firm Anova Policy.

Everything was dollarized except for the public sector which doesn’t generate enough foreign currencies and can’t pay higher wages to its almost 2 million employees.

Three union members fearful of losing their jobs have stated that a limited response from the government has caused some workers to quit.

According to union sources, staff shortages affected both the provision of basic services, and operations of state businesses, such as PDVSA (state-run oil firm), which has been ravaged by decades of US sanctions, mismanagement, and disinvestment.

The Venezuelan labor ministry didn’t immediately reply to our request for comment. The country’s vice president, Delcy Rodríguez, said this week that when the country has more income, the well-being of workers will improve.

THE “SALARY IS NOT ENOUGH”

The latest salary revisions by the government show that public sector workers in Venezuela earn an equivalent to between $30 and $100 per month.

The Venezuelan Finance Observatory found that private sector employees earn on average between $106 dollars to $247 dollars per monthly.

Ramona Franco (59) quit her position as a teacher in Maracaibo’s public school, where she was the capital of Zulia’s once-rich oil state. She now makes $1 lunches.

Franco, who was a former teacher and earned $15 dollars per month, said, “Years back, being a Venezuelan teacher was an opportunity for growth because of the high salaries. But, currently, it is absurd – a teacher’s salary is not sufficient to buy a kilo cheese.”

This is well under the average $300 cost for basic food necessities.

Hernando González, 23 years old, has been working as a waiter for 2 months in Maracaibo’s coastal Maracaibo. He earns about $100 per month and a mix salary of bolivars and dollars.

His partial payments in foreign currency are not sufficient to guarantee financial security.

Gonzalez stated to Reuters that Gonzalez tries to increase his wage for food, and also to help her one-year-old boy.

Pensioners get the bolivar equivalent for a minimum income – approximately $30 per month.

Alis Moreno (67) protested alongside other retired people outside of the labor ministry, “I have contributed for 35 years to social insurance and my pension goes towards buying medicine.”

Moreno makes ends meet selling candy in Caracas’ subway, making between $2.50-$5 per day.

“I was middle-class, and now I need alms to live.”

(Report of Mayela Armes in Caracas; Mariela Nava in Maracaibo; Anggy Polanco In San Cristobal; Writing by Brendan O’Boyle. Edited By Vivian Sequera. Aurora Ellis