Labor reform: Trade Union Council talks about the collapse of the project – Sectors – Economy

Labor reform: Trade Union Council talks about the collapse of the project – Sectors – Economy

After the project file labor reformshe union council He said that he agrees with the decision and that it opens an opportunity for the government to build consensus with Congress, the business sector and other civil society actors.

You can also read: This is how the unions see the collapse of the labor reform

“We share the autonomous and independent decision to archive the project, after listening to the public, the workers, the academy and the productive sectors about the negative impact it had,” said the Council, which brings together the most important economic unions in the country.

Also read: One year after the elections, what has happened to the dollar?

They also highlighted the importance at this time overtake a “democratic and open” legislative debate that allows Congress to make decisions that favor the greatest number of Colombians.

“The Council reiterates its interest and willingness to build with the Government, Congress, parties, union and worker organizations, and employers, legislation that, while improving the conditions of employees in the formal sector, defends and promotes the generation of employment and reduce informality”, can be read in the statement.

Germán Arce, president of the National Trade Union Council (CGN) and president of the Association of Trustees. Photo: Nestor Gomez. TIME

It must be remembered that the businessmen were concerned about some aspects of the project that raised labor costs, such as the fact that the night work shift starts at 7 pm and not at 9 pmas is currently the case, or impose a 100 percent Sunday surcharge instead of the 75 percent that exists today.

(Also: Labor reform: why was Minister Gloria Inés Ramírez not in Congress?)

In addition, the Group of Analysis of the Labor Market (Gamla) of Banco de la República published a report in which it said that if the project were approved, salary costs would increase to such an extent that companies would be forced to lay off some 450,000 of their formal employees in an average scenario in a horizon of between 3 and 4 years.

(You may be interested in: Labor reform: What does its collapse mean and what can the Government do? Analysis)

According to the report, the range of the cuts would go from between 152,000 to 746,000, based on the estimated response of formal employment to wage costs, which is equivalent to a reduction of 2.1 percentage points in the formality rate. All this in an average scenario.

“Only joint work and consensus will legitimize changes that will guarantee sustainable progress and well-being for all,” said the Trade Council.

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ECONOMY AND BUSINESS

By Mitchell G. Patton

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