Honduran President Orders Pay Hike--Cigar Brands Affected

Gregory Mottola
Posted: February 3, 2009

Honduran president Manuel Zelaya has ordered a comprehensive increase in the minimum wage that will require cigar factory owners to pay their rollers up to 50 percent more.

"The pay hike is effective February 1st," said Rocky Patel, owner of Honduran-made Rocky Patel premium cigars, which are produced in the El Paraiso factory near Danlí.

"The cigar industry will be heavily impacted by the increase," said Alan Rubin, owner of Alec Bradley cigars.

Honduras is second only to the Dominican Republic as a source of premium cigars for the U.S. market.

For more on this story, see the February 10 Cigar Insider.

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