Get 40% Off
👀 👁 🧿 All eyes on Biogen, up +4,56% after posting earnings. Our AI picked it in March 2024.
Which stocks will surge next?
Unlock AI-picked Stocks

Colombia government sends labor reform to Congress, aims to cut hours

Published 03/16/2023, 10:45 PM
Updated 03/16/2023, 10:57 PM
© Reuters. Colombia's President Gustavo Petro is pictured on the day of a presentation of the labor reform that his government wants to carry out, in Bogota, Colombia March 16, 2023. REUTERS/Luisa Gonzalez

By Luis Jaime Acosta and Carlos Vargas

BOGOTA (Reuters) - Colombia's government presented a labor reform bill to Congress on Thursday that would reduce working hours and boost overtime pay, but critics say the measures could hurt job creation.

The bill is part of a raft of reforms being pushed by President Gustavo Petro, the country's first leftist leader, as he looks to fight poverty.

Congress passed a major tax reform last year and is debating changes to the healthcare system. The government is expected to present a pension reform proposal next week.

Petro's coalition has a majority in Congress, though the health reform has caused friction with some legislative allies and led to the exit of one member of his cabinet.

"It is precisely the reduction of salaries, job instability, which have not allowed the growth of productivity in Colombia," Petro told a crowd in central Bogota, before the bill was formally proposed to Congress.

The initiative, which must be approved by both lawmakers and the Constitutional Court, seeks to enshrine eight-hour work days, reduce the normal work week to 42 hours and guarantee at least one day off every seven days. The standard workweek in Colombia is now 48 hours.

The reform risks hurting job creation, Jaime Alberto Cabal, president of merchants association Fenalco, told journalists earlier on Thursday.

"(The bill) forgets about the unemployed, the opportunity to access work and the possibilities for informal workers to get formal work due to the high costs," he said.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

The bill includes a measure to enshrine daytime working hours at between 6 a.m and 6 p.m., increasing the chance of overtime pay. Daytime hours currently run until 10 p.m.

Overtime cannot exceed two hours per day or 12 hours per week under the planned proposal, while work on Sundays or holidays will mean double pay.

The bill also seeks to ensure health and pension contributions for those who work through delivery apps and other digital platforms.

Latest comments

This will surely start the ball rolling... Now is it for the better, who knows...
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.