Through a letter addressed to the Seventh Commission of the House of Representatives, the President of Fenalco, Jaime Alberto Cabal, proposed to postpone discussion of labor reform, while negotiations are underway to define the adjustment that will apply to the minimum wage of workers for 2024.
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In the letter, the union leader emphasizes that Fenalco has on various occasions expressed its concerns and objections regarding the reform project. Especially when it comes to the impact its approval could have on labor costs.
According to the text, the increase in costs to which the manufacturing sector would be exposed in 2024 it would be around 30% and 40%. That’s if the salary increase and the impact of the labor initiative are taken into account.
“Business owners are at a crossroads due to high taxes, a declining economy, high interest rates and rising costs of living. Likewise, the increase in the prices of petrol, which is being recorded, and diesel and tolls, which the government recently announced, will significantly affect the cost structure, which would threaten the viability of many micro, small and medium companies. country and subsequently creating formal employment”Cabal said.
(Read more: The second round of labor reform does not bode well: why?)
Jaime Alberto Cabal, President of Fenalco
(See: Union Proposals Approved in Labor Reform Project)
On the other hand, the trade union is considering “inappropriate” continue this debate at a time when the Colombian economy is registering signs of slowing down. In addition, they mention that it should be taken into account that sectors such as trade, construction, industry and agriculture have been showing negative results for some time.
“A labor reform process that has not been agreed with the manufacturing sector will complicate negotiations and create additional elements that will have to be taken into account by those who are part of the Standing Commission for the Coordination of Wage and Labor Policy.”Cabal hinted.
(Read more: ABC how 2024 minimum wage hike will be negotiated)
When it comes to negotiating a percentage increase in the minimum wage, Cabal pointed out that any decision we agree on must be careful and considered.
Similarly, he said that this determination must be based on inflation and productivity index to guarantee the purchasing power of the workers.
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