Living Wage and Labor Force Statements from ISS Turkey CEO
Cavit Habib emphasized that companies should focus on a living wage that covers basic needs, noting that this figure should be 25-30 percent above the minimum wage.
ISS Turkey CEO Cavit Habib stated in an evaluation that wage policies should adopt a living wage approach capable of covering employees' basic needs rather than the minimum wage.
Living Wage Approach
ISS Turkey CEO Cavit Habib stated in his remarks to Bloomberg HT that wage policies need to go beyond the minimum wage. He expressed support for a living wage model that would cover the basic needs of employees.
Habib conveyed that this issue is being discussed in approximately 30 countries where ISS operates, and stated that the proposed living wage should be at least 25-30 percent above the minimum wage.
Access to Labor Force and Overseas Searches
It was stated that companies are experiencing difficulties regarding access to the labor force, which is one of the most important agenda items for the real sector. Difficulties encountered in procuring both skilled and unskilled labor were voiced.
In this context, it was emphasized that the process of procuring workers from countries such as India, Bangladesh, and Vietnam has effectively begun.
Costs and Cash Flow Risk
It was stated that rising wages, financing expenses, and operating costs maintain their weight on the agenda of companies. High financing costs and extended payment terms were noted to create a cash flow risk.
It was conveyed that consolidation has begun in mergers and acquisitions in Europe, while a drop in interest rates is awaited in the Turkish market due to high interest rates.