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March 16, 2023
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The ‘D’ day arrives for the labor reform of President Petro

Businessmen's warning: labor reform would impact employment

The third reform project of the Government of Gustavo Petro, labor reform, will be filed this Thursday before Congress. The initiative, according to the Executive, intends to modify the substantive Labor Code in three main points: equal opportunities for workers, protection of the individual rights of workers and protection of collective labor rights, referring to union guarantees. .

(Labor reform: the modifications that would be made to the project).

Therefore, among the bases of the project that would reach Congress is, first of all, the concept of reinforced job stability, which seeks that people who are in special circumstances can only be separated, if in addition to a just cause or legal cause, an administrative or judicial authorization is obtained.

This would cover people protected by union or health jurisdiction, workers with disabilities, pregnant women and up to 6 months after childbirth, pre-pensioners who have three years to go before retirement and head mothers or fathers. family without economic alternative “who are exclusively in charge of family responsibilities”.

The bill would also seek to reinforce contracting with the figure of the indefinite-term contract as a general rule, limiting contracting for the provision of services, and endorsing the fixed-term contract for up to two years.

(Against the clock: merchants criticize agreement on the reforms).

In addition, it defines changes in the working day, which would be 8 hours a day and 42 hours a week distributed over 5 or 6 days, with a daytime work schedule from 6:00 am to 6:00 pm and night work from 6:00 pm.

In addition, and as has been known from the draft of 73 articles that was discussed in recent days at the consultation table, courier workers will be sought to be formalized through platforms through a labor contract and, in order to To promote the public policy of labor formalization, all employers in the private sector must register the employment contracts they sign with the Ministry of Labor.

Although about five months ago a subcommittee was established to build the project, made up of unions, unions and the Government, and this week the tripartite Committee on labor and salary policies met, there are still several points that have not reached a definitive agreement. before the Legislature.

(‘We want solid companies but without job insecurity’: Mintrabajo).

From Fenalco, for example, the short time that the negotiation table had in recent days to review the project was criticized. In an interview with Portafolio, Jaime Alberto Cabal, president of the merchants’ union, assured that Fenalco left a record on some points on which there is no agreement, as a consensus “for going against the possibility of generating employment as the new costs that suffocate companies.”

From Andi, Bruce Mas Master, highlighted, for his part, the importance of social dialogue and mentioned that although it is unlikely to reach a total consensus or a complete agreement regarding what ends up being settled between unions and unions, “It is valuable to know that there are aspects with total agreement”.

For several experts, however, the project still raises doubts regarding the impact it could have on the labor market, especially in relation to the formality of workers.

Carlos Mario Sandoval, Lead Partner People Advisory Services, EY Colombia and Mexico, assured that changes are expected in labor costs for companies and that is why it is necessary to “analyze the impact of these proposals for companies, micro-entrepreneurs, informal and unemployed”.

Such would be the case with the limitation of the provision of services, which according to the expert, would eliminate opportunities for SMEs and individuals, since it would imply an increase in the costs of some services that companies hire, such as surveillance or cleaning.

He also warned that in the case of labor outsourcing, since the reform forces these companies to have the same extra-legal cost scheme, “It would structurally affect these companies, which today provide formal employment to more than 400,000 people.”

LAURA LUCIA BECERRA ELEJALDE

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