Sunday, October 1, 2023

Night bonuses from the labor reform would increase a company’s costs by up to 200%

The Colombian Association of Temporary Employment Agencies, Acoset, has published a report that calculates the cost overruns that would occur in organizations if the labor reform promoted by the government of President Gustavo Petro were adopted in its current form.

The Association of Temporary Employment Agencies said that night supplements would increase a company’s costs by up to 200%, because the proposal stipulates that daytime night work begins at 7:00 p.m., which would mean that for those who hire during this period between 2:00 p.m. and 10:00 p.m., one hour with supplement and three hours with supplement have to be paid.

On the other hand, Acoset has highlighted this Sunday surcharges would cause the cost of hiring a person to gradually increase by 100% by 2026, as they currently account for 75% of those hiring on these days.

In addition, regarding compensation, the union said: “Currently, there are different compensation tables for those who earn less than 10 minimum wages and those who earn more than 10 minimum wages.” The study conducted the calculation using a person who earns $2 million per month and has worked at the company for 11 years; Under the current standard, their compensation would be $15.3 million, and using the standard proposed in the labor reform, the value of the compensation would be $42.3 million, an increase of 180%.”

With regard to the Sena quota, i.e. the interns of this institution, they would have to switch to an employment contract with all the rules, with a current legal minimum wage, so that, according to the union, costs would increase by 113%. Regarding paternity leave, Acoset says this measure would represent a 500% increase.

For his part, Miguel Pérez García, president of Acoset, emphasized that the rights of workers must be protected and guaranteed, because “we are in complete agreement and are moving in the same direction, but employers must also be supported in labor reform.” “Guarantee and create formal jobs and opportunities for all Colombians, underserved populations and anyone who wants their work valued.”

What do companies think?

Saad Nasar, country manager of Job&talent, said that one of the points that concerns his organization the most is the issue of remuneration, since with the new reform that the government is proposing, every contract should generate one, so that temporary employment agencies do not would do more have the “temporary character” that characterizes them.

José Bustamante, CEO of Contrate, said the government “did not meet with the unions,” particularly Acoset. to discuss the articles that, according to Bustamante, concern temporary employment agencies, as they have “no incentives” to create new jobs, be it through taxes for every job created in the company, through training quotas and through investments in salaries and job security.

Edgar Ayala, managing director of Recursivos Serviayuda, emphasized that by increasing costs in this way, this reform “promotes informality” since small and medium-sized companies “cannot bear the additional costs that they incur compared to companies”. which are now required by law.

Furthermore, he said that “every company” You need to restructure your organization as you need to reduce your staff and therefore the number of people running the companies. That is why he demands that “the only increase should be the formal employment rate”. within the sectors.

Other effects you see in the time windows

Temporary employment agencies affected by the government’s labor reform due to their temporary model create about 500,000 to 600,000 formal jobs, according to the Acoset union, and the association expects that if the labor reform is passed in its current form, an immediate loss of 100,000 jobs and that the rest will be lost due to uncertainty. The union calls for them to be recognized as actors who create formal jobs for people across the territory.

Nation World News Desk
Nation World News Desk
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