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Gustavo Petro, president of Colombia, proposed a brand new labor reform, which has prompted important discontent amongst residents. Principal adjustments embrace:
- Digital Platforms Leveraged in Gig Financial system (Article 29. Obligation to confirm social safety): Digital platforms should confirm that such staff are affiliated to social safety or in any other case should assume the fee of 100%.
- Dismissal of Susceptible Staff (Article 4. Job stability): Folks described beneath, might solely be dismissed if along with the existence of a simply trigger or a authorized trigger, having exhausted the respective process, and are:
- Moms or fathers, head of family whose household revenue relies on the wage earned.
- Disabled
- Pregnant ladies and as much as 6 months after baby delivery.
- Pre-pensioners, i.e., those that are three (3) years or much less away from fulfilling the necessities to acquire the outdated age pension.
- Holidays and Sunday Work (Article 18): Employers are presupposed to pay you time beyond regulation should you work on a vacation or Sunday, however now it’s proposed that holidays and Sundays shall be paid with a 100% time beyond regulation and night time hours shall begin at 6:00 pm, so each work after that point falls underneath this rule too.
- Contracting Fashions ( Article 47. Indefinite time period contracts would be the basic rule): it step by step places an finish to unbiased contracts, the place in some instances it isn’t used for momentary jobs, and it truly is an employment relationship and the funds that by regulation correspond are acknowledged.
The reform has prompted important discontent, notably within the case of Rappi staff who determined to protest towards its implementation. The President’s response to the protests has been detached, and his current tweet ridiculing protesting Rappi staff has executed little to calm the state of affairs.
What motivates these staff to protest towards such labor reform?
The CEO of Rappi, Simon Borrero, has acknowledged that between 80 and 85 p.c of their staff work often, and lots of produce other jobs, examine, or commit time to their households. Thus, they’d not have the ability to proceed working underneath the proposed mannequin.
That explains why Rappi staff’ protests towards the labor reform are comprehensible, because the proposed measures would initially have an effect on their means to handle their time. Past that, the proposed reforms threaten the freedoms and suppleness which have enabled the corporate to thrive and have created employment alternatives.
Present Minister of Labor, Gloria Ramirez, indicated that the current labor reform “doesn’t search to generate employment, however to enhance working situations”, which makes the state of affairs very worrisome, particularly for these individuals who dwell within the casual sector and people who are unemployed.
In view of this, individuals such because the president of Fenalco, Jaime Alberto Cabal, present their concern concerning the state of affairs by calling for one other new labor reform undertaking, since it’s greater than clear that the present proposal would critically have an effect on the financial system and the employability of the nation.
A labor reform that negatively impacts staff shouldn’t be applied.
The proposed labor reform in Colombia would have detrimental penalties for staff within the gig financial system. As an instance my level, let’s take into account the case of two staff named Juan and María.
Underneath Rappi’s versatile labor mannequin, María earns extra money than Juan as a result of she works extra hours delivering items, whereas Juan solely works a number of afternoons per week as a result of he additionally has to assist run his father’s enterprise. Nonetheless, if the labor legal guidelines modified to require a set schedule of 40 hours per week, Juan wouldn’t have the ability to comply due to his obligations to his household’s enterprise, and María wouldn’t have the ability to work within the mornings, as a result of she is attending college.
If Juan and María had been each required to work a set schedule and had been paid the identical quantity whatever the variety of deliveries they made, it could be unfair to María, who can ship twice as many items as Juan. This may additionally lower productiveness, as it could not incentivize staff to be extra environment friendly. Due to this fact, the versatile labor mannequin, which pays staff primarily based on the variety of deliveries they make, is extra useful for each staff and employers.
It is very important take into account the the explanation why staff are protesting the labor reform and to acknowledge their proper to take action. Any reform that would go away many individuals with out jobs and worsen the nation’s financial situations shouldn’t be applied. The federal government shouldn’t impede financial development however reasonably promote financial freedom by offering incentives for staff to be extra productive and for entrepreneurs to innovate and fulfill societal wants.
Omar Camilo Hernández Mercado is a regulation pupil on the Universidad Libre de Colombia, Senior coordinator of College students for Liberty in Colombia, and a seminarist in “The Austrian College of Economics” on the Worldwide Bases Basis.
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