Rudolf Hommes, ex-minister of Hacienda. W-Radio

The project of labor reform of the government of Gustavo Petrowhich will be presented to the Congress of the Republic on March 16, 2023, is one of the issues that Colombians are currently debating for all that this implies for the job creation, business welfare and formalization of workers.

With this, the Ministry of Labour will seek to modify 77 articles of the Substantive Labor Codein addition to the laws: 50 of 1990 and 789 of 2002. This came after the 18 sessions that the so-called labor reform subcommittee developed, in addition to the visits of the accompaniment of the International Labor Organization (ILO).

The portfolio has already given some clarification on what this initiative will look like. He indicated that it is composed of three parts: Constitutional principles: Equal opportunities for all workers in the public or private sector, regardless of their contractual situation, who benefit from minimum remuneration and job stability. The second part, consisting of individual labor law, aims to protect the worker or worker. And the third contains the collective labor law, and which includes the guarantees of union association, collective bargaining and strike

Of course, the unions and associations have expressed what they see there. For example, the National Federation of Commercial Enterprises (phenalc) warned that as is, it would force companies to take on certain cost overruns which could exceed 20%.

The former finance minister is one of those who always think about the decisions of the national government and which have an impact on the economy of the country. Rudolf Men.

Now, on labor reform, he warned that the increased labor costs initiative can induce an increase in productivity because companies will reduce labor costs. According to him, the uncertainty is that this reduction in employment will not be corrected by a dynamic increase in the product that prevents greater informality.

In addition, he issued an alert on who will be affected if this initiative is approved as is.

“The most affected by the labor reform will be those who have suffered the most from the pandemic: those who seek, the informal workers, the least trained, small service, catering and tourism businesses, the non-unionized and those low-income people who don’t have mattresses,” he said.

He noted that we must consider those who will lose the most with the reform and see how they offer parachutes or soften the blow. In turn, he said that the popular economywho seeks to promote Petro, will be affected.

Tuit by Rudolf Men.
Tuit by Rudolf Men.

“There is a phenomenon on the left which has an equivalence on the right, which is that the most radical do not think of the weakthey slaughter them without remorse,” the former finance minister said.

In line with Men, the Dean of Economics at the Universidad del Rosario, Miguel Gomez Martinez, recently assured that “labour reform must be carried out with the unemployed and informal workers in mind”. He affirmed it by analyzing the number of unemployment published by andl National Administrative Department of Statistics (Den) for 2022 and which amounted to 11.2% for the national average.

Gómez stressed that they are necessary strategies which correct the structural problems of the labor market. Furthermore, he noted that it is clear that the economic growth it weakens globally and locally.

According to him, with less dynamic economic activity, unemployment is unlikely to return to levels of A number. Therefore, he noted that it is necessary to activate other options to reduce unemployment.

“Labour reform is a golden opportunity to remove some of the barriers that prevent millions of Colombians from having formal and stable jobs. The numerous studies carried out in Colombia on the problems of the labor market conclude that a more flexible framework is necessary for the hiring of personnel that improves the productivity of the economy”, underlined Gómez Martínez about the initiative that will be presented in the Congress of the Republic during the next legislative session.

The Dane’s January report confirmed that 2.5 million Colombians are unemployed. Given this, the Dean of Economics of the Universidad del Rosario clarified that the government must propose a labor reform thinking of those who do not have a job and not those who already have it.

“It is not a question of reinforcing the guarantees of those who are already on the labor market. We must first think of those who live in the marginality and unemployment”, explained Gómez Martínez.

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