A generation of progress vanishing into thin air
Congress is again analyzing President Gustavo Petro’s labor reform proposal, and the result seems very problematic: it could be even worse than the original proposal. On May 27th, the fourth committee of the Senate approved a version of labor reform, which now moves to the floor of the upper house.
Key topics approved are: 1) a regulation to transition from temporary to indefinite labor contracts, and fixed-term hiring limited to five years; 2) that a new working day can be established by agreement between parties; 3) workers can be allowed rest three days a week and work for four; 4) the Sunday surcharge will be 100%; 5) holiday work will be paid with a 75% surcharge; 6) the stipend given to apprentices increases from 50% to 75% of the minimum wage; 7) two physically-challenged people should be hired for every 100 workers; 8) part-time workers’ income is regulated and improved through wages, social benefits and vacation time. According to Fedeseguridad, the cost per worker would increase by 18%, and 18,000 jobs could be lost if the labor reform is approved as currently proposed.
Interior Minister Armando Benedetti has also raised the possibility of approving any referendum by decree, which constitutional lawyers consider blatantly illegal. Though the government called for a May 28th-29th national strike, the response was so muted that Petro and Benedetti claimed they hadn’t called it. What a difference a day makes.
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