Petro Seizes Colombia Labor Reform Victory, Worrying Businesses
The Colombian Senate approved one of President Gustavo Petro's key reforms to boost workers' benefits, creating concerns among businesses that it would raise labor costs.
The bill would increase the surcharge for Sunday and holiday shifts to 100% from 75% of the regular salary. According to the current version, overtime payments would start at 7 p.m. instead of 9 p.m., and full-time contracts would be the default. The bill needs additional votes in both chambers to reconcile differences between the two versions.
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Colombia's Senate approves labor bill that would mean more pay and protections for workers
BOGOTA, Colombia -- Colombia's Senate on Tuesday night approved a labor bill that is expected to grant workers more overtime pay while making it harder for companies to hire employees on short-term contracts. The bill's approval comes as tensions have been increasing between the Senate and President Gustavo Petro over reforms to the economy and health system that have polarized the nation's politics and tested the separation of powers in Colombia's fragile democracy. Petro has repeatedly accused Congress of blocking his reforms and last week issued a decree that called on Colombia's elections agency, the National Registrar, to organize a referendum on labor laws. The agency said Tuesday it would wait for Colombian courts to decide if it was legal for it to organize the referendum, because the Senate had voted against the referendum last month. Petro has threatened to change Colombia's constitution, by calling for a constituent assembly, if his request for a referendum on labor laws is not granted, and in a post on X Tuesday, said that those who did not approve the referendum were committing 'treason." Opposition leaders have accused the president of developing an authoritarian streak, as he tries to override decisions made by Congress. The labor bill approved by Colombia's Senate on Tuesday includes many of the changes to Colombia's labor laws proposed by Petro's party, the Historical Pact. It increases surcharges paid to employees who work Sundays and also makes companies pay more for late evening shifts, which is likely to apply to many retailers, restaurants and hotels. The bill also says delivery apps must formally hire delivery workers as freelancers or as full-time employees and help to pay for their health insurance. Business associations in Colombia oppose the changes, arguing they will raise the cost of employing people and could ultimately increase unemployment. Currently, 56% of Colombian workers labor with no contracts, in what is known as the informal economy. Economists expect the reforms to push more people into informality, while supporters of the bill argue they are just pushing for the restoration of rights workers had in the early 1990s, before Colombia began to make labor laws more flexible. The Senate and House of Representatives must now reconcile the differences in the bills each chamber drafted and then agree on a final version of the bill. Petro wrote in a message on X that he will continue to push for the referendum until legislators from both chambers have voted on a final bill.
Forbes
5 hours ago
- Forbes
The Colombian Designer Who Turned Beach Waste Into Fashion Gold
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Espinosa shows further commitment: for every swimsuit sold, a tree is planted, and proceeds go to supporting coral reef restoration in Colombia's San Andrés archipelago. Last year, Baobab made its debut at PARAISO Miami Swim Week and hosted its first Miami pop-up in the Design District, in addition to opening its first flagship boutique in New York. This year, the brand is showing no signs of slowing down, having launched on Moda Operandi and its high summer collection, 'Le Soleil', that continues to draw inspiration from Colombia's biodiversity. This week, Baobab announced its collaboration with New York It girl Leah McCarthy, unveiling a 30-piece range of swimwear, dresses and accessories that embodies a touch more playfulness on top of the brand's usual elevated aesthetics. Looking ahead, Espinosa's vision remains uncompromisingly ambitious. 'Growth should never come at the cost of our values,' she insists. 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7 hours ago
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Colombia High Court Returns Petro's Pension Bill to Congress
Colombia's Constitutional Court returned the government-backed pension reform to Congress, citing a procedural error in a move that offers a glimmer of hope for President Gustavo Petro, whose ambitious social reforms have faced significant hurdles in the legislature. The nation's highest court gave the lower house 30 business days, starting from the ordinary congressional period on July 20, to correct the mistake. Meanwhile, the pension law's enactment, which was scheduled for July 1, was suspended. Its implementation now depends on a definitive ruling from the court on its constitutionality or a new enactment date set by Congress.
