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April 19, 2023
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Pros and cons that the agricultural contract would bring

Pros and cons that the agricultural contract would bring

Yes ok Colombia It is a highly informal country, with six out of ten workers in this condition. In the countryside the situation is even more complex, since in rural areas the informality indicator is 86%. Hence, in the labor reform project that the Government filed before the Congress of the Republic there is a specific section for the rural sector.

Article 29 proposes the creation of the ‘agricultural contract’, a figure that applies “when the worker or worker works in the execution of tasks typical of the agricultural activity in the entire chain of primary production, without prejudice to their recognition as a peasant person”.

(Strengthen relationship with Colombian agriculture, objective of PepsiCo Alimentos).

The project specifies that if the activities carried out for this contract are maintained for more than 27 continuous weeks for the same employer, it will be understood as stipulated with this indefinite time, and it is clarified that this type of contract does not apply to agro-industrial companies to which the general regulations of the Substantive Labor Code apply.

In addition to this, article 30 of the project proposes the creation of the agricultural wage modality, to remunerate this type of contract. Thus, the payment of salary can be agreed, as well as social benefits and legal benefits.

(Government assigns $95 billion for agricultural insurance).

Although the agricultural unions perceive this as a positive initiative, its implementation in practice has several challenges and there are also various opinions in the sector.

The labor reform was discussed, before being filed, at the labor and salary policy agreement table, in which Colombian Farmers Society (SAC) It is one of the participating unions, together with the Government and the unions.

From the SAC we have always talked about the importance of formalizing the field, of having an agricultural contract. We made a proposal to the minister, which is partially included in the reform”, explained the President of the SAC, Jorge Enrique Bedoya.

(The country where they seek to ban the consumption of meat from dogs and cats).

According to the union representative, the text includes important elements for the sector, but ensures that “some things are missing”, such as being able to pay by the hour, and that in the pension reform social benefits can be paid by the hour.

A daily wage was left, and social benefits are paid based on the daily, but if you work one day, you are paid for a quarter of a month, that is, a week. And that is not going to solve the problem of rural workers who have up to three employers a day.”, he explained.

This, according to Bedoya, has to do with the dynamics of short-cycle crops, small and medium-sized producers, and farms that demand seasonal work, where the bulk of informality in the countryside is.

(‘Bud rot’, a pest that affects oil palm in Colombia).

For example, a rural worker milks cows in the morning on one farm, but in the afternoon he goes to another to participate in the maintenance of a potato crop. That worker today does not have the possibility of having a formal job because the labor regime does not enable him to have an hourly contract, with the consequent contributions of social benefits.Bedoya questioned.

But in addition, the director of the SAC emphasized that in the agricultural sector there is formal and informal employmentand that the latter will feel some impacts of the reform, beyond the agricultural contract.

There are broadly formal sectors, such as bananas, palms, hass avocados, flowers, poultry, pigs and the dairy industry, where there are companies with collaborators with normal working hours and formal contracts. This universe will be impacted by the generality of the reform and the changes in individual and collective rights”, he commented.

From fedecacaohis President, Eduard Baquerostressed that “It is an important issue for the agricultural sector, taking into account that nothing similar had ever been contemplated before and for a long time the importance of formalizing”.

(Colombia closed March with a 13% drop in coffee production).

In the case of the cocoa subsector, Baquero commented that around 94% are small producers, with less than five hectares. According to an internal census of the union, 84.4% of these small producers hire daily wages.You have to look at its implementation and who would have to pay those wages, which are the small producersyes,” he said.

From Analacthe dairy farmers’ union, its president Philip Pinilla agreed on the importance of advancing in formalization, and described as positive the idea, but also expressed concern about how the process will be.

(World food prices continue to fall, but are still high).

The agricultural contract can help to formalize the wage or occasional wages, but a question remains for the Government as to how it will be done”, said Pinilla, who assured that the approach must be based on the applicability of the norm.

If a producer wants to hire an agricultural wage for the next day, it must be something agile to do and with clear rules of the game, about, for example, who makes the social contributions. There is a whole challenge to explain what the agricultural contract is about”, he assured.

Affiliates to the sisbén, a point to review

One of the complications that the project could face has to do with those informal rural workers affiliated with the sisbenand who by this means receive subsidies from the State.

(Producer prices in Colombia fell 0.84% ​​in March).

The president of Fedegan (Colombian Federation of Ranchers), Jose Felix Lafauriehighlighted that in the rural sector there are many people ‘sisbenized’ and that for this reason, “We have to see how they can be formalized, because the Sisbén does not accept that they be linked to work. There are many topics that need to be discussed in depth.”.

Lafaurie reiterated the need to bear in mind that the conditions of the rural labor contract cannot be the same as those of the urban one.

LAURA LUCIA BECERRA ELEJALDE
Portfolio Journalist

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