The preliminary draft of the Labor Code has aroused great concern in all businessmen in the country for not having been agreed upon between the private sector and the workers. Due to this, the main business associations have asked the holder of that portfolio, Betssy Chavezthat the proposal be submitted for debate in the National Labor Council (CNT)instance where the representatives of workers, employers and the State approve by consensus the changes in the labor regime.
The request is based on the fact that the proposal is currently only open for suggestions for a period of 20 days. And without major changes, the document promoted by the ministry of Betssy Chávez would impose the labor code, ignoring that the workers had already reached agreements on 85% of issues related to the proposed General Labor Law.
“The line of action that is intended to be consolidated with the pre-publication of the preliminary draft and the exclusion of its discussion in the CNT is one that departs from the democratic principles that inspire tripartism, dispensing with it, as has been done arbitrarily and unjustifiably in the case of the modification of the outsourcing regulation and in the setting of the Minimum Vital Remunerationboth regulations of the Ministry of Labor”, reads the letter sent to Chávez and which is signed by nine private institutions, including Confiep.
THE QUESTIONS
The main problems noted by the experts would be cost overruns and labor rigidity for the hiring and termination of staff. This was explained by the labor specialist of the Muñiz Study, Ricardo Herrera.
“Work contracts are reduced from nine types to six. The maximum duration of employment contracts is reduced from five years to two. Then, in terms of dismissal, severance pay is raised from a limit of 12 salaries to 1.5 salaries per year with no cap (…). Hiring restrictions and higher termination costs push companies not to formally hire staff. The problem is that greater labor informality is going to be generated due to the stimulus of the law itself,” warned Herrera.
He specified that the greatest impact could be seen in micro-enterprises, which represent 94% of the business universe.
Data
-Other unions that sign the letter are the National Society of Industries, the Association of Exporters and the Association of Banks.
-Also the National Fisheries Society, the National Mining, Oil and Energy Society, Comex Peru, the Lima Chamber of Commerce and the Peruvian Chamber of Construction.
