BOGOTÁ (AP) — Colombia’s Congress is set to debate a labor reform promoted by left-wing government Gustavo Petro that proposes reducing the working day and changing hiring rules.
“It is precisely the reduction in wages, the instability of the workforce, which has not allowed the growth of productivity in Colombia,” Petro said when presenting the proposal in a symbolic act. Thursday evening in front of the presidential palace.
Labor reform comes to Congress as the government majority isn’t as cohesive as it was months ago after intense debate over another reform that aims to change the health care system.
The National Federation of Traders criticized the proposal on Friday through a statement in which it assured that it would significantly increase labor costs to hire staff between 30% and 35%, affecting in particular trade, hotels , restaurants, bars, transport and entertainment.
The project aims to reduce the working day so that daytime work begins at six in the morning and ends at six in the afternoon. Currently, it extends until nine o’clock in the evening, and only from then on is it considered nocturnal. This change would lead companies to pay more overtime. In addition, the increase for working on a Sunday or a public holiday would increase from 75% to 100% of the ordinary salary.
In order to achieve greater job stability, according to the government, the draft law proposes that workers be bound by employment contracts of indefinite duration and exceptionally by temporary contracts to carry out specific or fixed-term work for a maximum period of two years.
Even in temporary contracts, the draft indicates that the worker would be entitled to paid leave and social benefits.
The government has proposed to formalize the majority of public sector workers who usually have service provision contracts, a modality in which the employer does not guarantee vacations or contributions to the social security system and can only last a few months .
In addition, people with health problems, disabled and pregnant women and women up to six months after giving birth could only be dismissed for “just cause”. In these cases, companies would need an authorization issued by an administrative or judicial authority.