Minister of Economy Luis Caputodetailed the labor reforms to be submitted to Parliament after December 10th. Although there are still questions about its implementation and benefits, experts see an opportunity.
Businesses want federal and sector-focused reforms aimed at creating jobs for young people and reducing non-wage labor costs.
What are companies looking at?
Javier Fernández Verstegen, Brons & Salas Labor Law and Labor Relations Specialistexplained that labor reforms that benefit companies need to take into account differences between companies.There’s no point in putting everyone in the same bag., The parameters of multinational companies are different from those of small and medium-sized enterprises. The challenge is how to create laws that cover a variety of economic and federal situations. ”
Laws that regulate the labor market, such as the Labor Contract Act, were enacted more than 50 years ago, so while reforms are welcome, he believes they are essential for companies. “Legal and pension certainty”. Although these two aspects are better than labor reform, Fernández Verstegen was optimistic that labor reform can be achieved. In return, it is necessary to carry out “legally sound reforms.”
An important point that must be addressed beyond transcendental issues is that Simplify and modernize your processes A laboratory that has become obsolete.
“The concept of the company has changed. What should we aim for?” Simplify procedures so that jobs can be created without lifting protection. This is the principle that distinguishes labor law,” the expert said.
Fernández Verstegen said one of the strengths of the reforms would come from the Prime Minister’s side. federalization. “That perspective is problematic. Many production centers have been established in rural areas where there is a need to apply modernization of the workforce that promotes youth employment.. Joining hands, we must discuss the following Unionized education system Involvement of governors in negotiations to approve reforms can ensure that these reforms include regional differences. The latter is what the government had expected. chronicleraccessed a study by the Department of Deregulation. In the face of national collective bargaining, regional differences become evident.
“The engine of employment will be small and medium-sized enterprises. Small and medium-sized enterprises not only need labor reform, but also a reduction in their tax burden.”But basically it’s about simplifying registration. This requires agreement between jurisdictions,” Fernández-Verstegen added, arguing: Coordinate with state and local governments what the tax burden will be, at least for small businesses..
“The entity is well aware that: The need for structural change To save the source of your work. Today, many people are looking to requalify, reskill, or upskill. ”
In the case of multinational companies, Fernández-Verstegen explained that when looking at labor reforms not strictly as a cost issue, but as a matter of guarantees to promote investment, it means knowing clearly what the labor dynamics to be adopted will be.
Cancellation funds
“We plan to add labor reforms from the economy. If the numbers allow, Some guidelines to further facilitate formalization. “We are looking at reducing employer fees and replacing them with severance pay.” Caputo said in a conversation with LN+.
Retirement funds are already in force, proposing that employers or workers can contribute to an account (whether capitalized or not) to cover their eventual retirement.
One of the advantages of this model is that Funding capital markets through income-generating funds.
Although the measure was in force, no companies complied. Labor lawyers seeking reservations argued for two shortcomings in the minister’s proposal, although some of the shortcomings found included the cost of the model. On the one hand, it ensures that the funds will be present in case the income-generating scheme is applied.. On the other hand: Strong financial restructuring of the pension system, which has already been severely damaged Their incomes increased and the Treasury became more prominent.
Plus, it would mean a big hit. collectionAccording to IARAF, contributions and contributions to social security will account for 19% of collections in 2025.
Officials said the request to divert retirement funds came from the private sector.
Given that current abolition funds exist, they have had little success. Requested to allow reduction in donations to enrich the fundespecially the uppercase ones. therefore, Capital market growth will foster trust again The private sector was hit hard after interest rates rose.
“It’s like mixing pears and apples,” the labor lawyer revealed. Yes, the possibility of lowering employer fees is under discussion. Beyond this detour. Of course, always As long as economic figures allow
This will start negotiationsWhat elements are downloaded? The impact on small and medium-sized businesses will be greater if social security is cut, solidarity payments, trade union or chamber of commerce funds, or if costs are negotiated to be reduced in stages. The truth is that negotiations will involve Cordero not being considered an interlocutor. Perhaps this thought led the Labor Secretary to spend Tuesday afternoon at the Treasury Palace.
Dynamic salary?
Secretary of Labor; Julio Cordero It was he who put the dynamic salarya joint venture is the base, and additional joint ventures correspond to productivity. The Ministry of Human Capital has revived this initiative.
Those familiar with negotiations argue that this can also be applied to company-specific negotiations, but It has to pass through the eyes of Starzenegger, who has influence over this project.
Probably the fundamental thing under treatment is agreement negotiation. The foundation from the business world can be seen in the following facts: Sector and company specificitiessome of them are specialized for different branches. Negotiating on a company-by-company basis allows you to change things like dynamic pay and compensation, to be precise.
Unions say this weakens collective bargaining and reduces workers’ power when negotiating with companies.
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