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February 27, 2022
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SNMPE: the partial elimination of outsourcing will affect formal employment and productivity in the mining and energy sector

SNMPE: the partial elimination of outsourcing will affect formal employment and productivity in the mining and energy sector

The decision of (MTPE) to partially eliminate labor outsourcing will mean a severe setback for the reactivation and seriously jeopardizes the sustainability, competitiveness and productivity of the .

This concern was expressed to the president of the Council of Ministers (PCM) Aníbal Torres by the board of directors of the National Society of Mining, Petroleum and Energy (SNMPE) that is made up of Raúl Jacob, president and vice presidents Magaly Bardales of the mining sector , Carlos Mario Caro from the electricity sector and María Julia Aybar from the hydrocarbons sector.

During the meeting held at the PCM headquarters, the directors of the SNMPE pointed out that through Supreme Decree No. 001-2022-TR, the MTPE has made a unilateral and arbitrary decision, which would entail the loss of thousands of jobs. work, in addition to increasing various prices and costs, which could generate the paralysis of investments and new projects in the mining, electricity and hydrocarbon sectors.

LOOK: Outsourcing: to what extent is the contracting company responsible for the contractor’s workers?

The business association explained that the aforementioned Supreme Decree of the MTPE transgresses the Political Constitution in the principles related to business freedom, freedom of contracting, property and legal certainty, as well as being contrary to both the Outsourcing Law, which does not establish restrictions on The matter; and the TUO of the General Mining Law that enables mining companies to hire specialized companies registered with the Ministry of Energy and Mines in order to carry out exploration, development and exploitation work.

They also detailed that this decree does not protect workers, threatens the process of formalizing employment in the country and creates a serious risk for the continuity of companies dedicated to providing outsourcing services, endangering thousands of formal jobs. in which the rights of workers are respected and safeguarded.

The business association explained that the aforementioned Supreme Decree of the MTPE transgresses the Political Constitution.

“During the Covid-19 pandemic, the strength of the productive ecosystem of the mining sector allowed 1.8 million Peruvians to preserve their jobs, but today with the norm issued by the MTPE, with an eminent populist bias, an important part of them they are in danger of being lost”, underlined the representatives of the SNMPE.

In that sense, -they detailed- that in the mining industry there are 2,069 contractor companies that would be negatively impacted by the decision of the MTPE, which even harms the communal companies that have formed the populations neighboring the mining units.

Likewise, they emphasized to the Premier that the DS lacks the technical foundations to eliminate the outsourcing of activities in the provision of public services, as is the case of the electricity sector, which will cause a rise in rates to the detriment of end users.

“Public utility companies carry out most of their operational activities through outsourced services because this scheme generates greater specialization and cost efficiency for the determination of rates,” they commented.

In this regard, the energy mining union specified that affecting this contracting scheme would also make the service more expensive due to the loss of efficiency that would originate from the disappearance of the specialized contracting companies that work simultaneously in the attention of different public services, using for this the same machinery, equipment and supplies to serve the different sectors.

They also warned that this regulation, approved behind the back of the National Council for Labor and Employment Promotion, is going to exacerbate the crisis facing the hydrocarbon sector, given that it will mean a loss of competitiveness for the companies that operate in the country by having to assume extra cost that would imply the elimination of outsourcing.

The National Society of Mining, Petroleum and Energy warned that the MTPE's DS will encourage the informal sale of liquid fuels and LPG.
The National Society of Mining, Petroleum and Energy warned that the MTPE’s DS will encourage the informal sale of liquid fuels and LPG.

“A measure of this type would make the entire formal chain of commercialization of liquid fuels, natural gas and LPG more expensive, translating into higher inflation,” they quoted.

The National Society of Mining, Petroleum and Energy warned that the MTPE DS will encourage the informal sale of liquid fuels and LPG, which are highly regulated activities in labor, tax, safety and environmental aspects.

“There will be a perverse effect on the costs of the companies that will affect tax collection and at the same time will harm the amounts of the gas and oil canon, which are defined on the basis of income tax and are later distributed to the regions. ”, they indicated.

Finally, the SNMPE board urged Prime Minister Aníbal Torres for the Government to review and repeal Supreme Decree No. 001-2022-TR since it will affect the economic reactivation and development of the energy mining sector. Likewise, they ratified their willingness to participate in a transparent and sincere dialogue between the business sector and the current government administration with the purpose of working together for the progress of Peru.

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