Latest news with #reformaLaboral
Yahoo
26-06-2025
- Business
- Yahoo
Colombia's president signs a labor overhaul into law after 2 failed attempts
BOGOTA, Colombia (AP) — Colombian President Gustavo Petro signed into law on Wednesday a controversial labor overhaul with the potential to profoundly shift the balance of power from employers to workers, a key victory for the left-wing leader even as Congress compelled him to scale back his more radical ambitions. The enactment of the law marks a milestone for a president who has struggled to deliver on his promises to reduce inequality in one of the region's most unequal nations. But it's faced opposition from business leaders and Colombian government bonds have suffered as markets worry about the fiscal and economic effects. The law increases overtime pay for salaried workers and limits the use of short-term contract workers, while requiring companies to provide medical coverage and social security for gig workers like food delivery drivers. It also promises student interns proper contracts and benefits like vacation time and severance pay. Many of Petro's efforts to vastly expand social programs have stalled in Congress, with lawmakers shooting down this labor law twice. Lawmakers let the legislation squeak by last week after Petro's moved to call a public referendum. Petro signs the law at the home of Simón Bolívar Petro signed the legislation at the historic home of 19th-century war hero Simón Bolívar, who led South America's fight against imperial Spain. He posted on social media platform X: 'I sign the labor reform into law before Bolívar and the working people.' 'We must elect a government that will uphold this law and enforce it,' Petro said, alluding to the 2026 presidential elections. Opposition says the law will hurt employment The reform was cheered by trade unions and Petro's political allies Wednesday. But his push to strengthen worker protections has proved controversial, as the expensive benefits are expected to hike up costs for business owners. Petro's government has promised to push through a new bill to help small businesses, though the details remain unclear. Opposition lawmakers have painted a nightmare scenario of mass layoffs that will push more workers into Colombia's already vast informal economy. Many say that the mandated reductions in working hours, increases in overtime pay for Sunday and holiday shifts will especially squeeze small and medium-sized businesses. Already, his government's increased spending and reduced tax income have challenged fiscal stability. Critics also say that the changes won't help informal workers without contracts, who represent over half of Colombia's total labor force, according to the latest figures. The legislation guarantees health and pension benefits for only some gig workers, such as app-based delivery workers. Then there's the question of compliance. 'I want to tell those employers who say they won't implement the labor reform that they're not intelligent,' Petro said on Wednesday. Petro had to scale back the law to get it through Even as he hailed the law, it fell short of Petro's ambitions. He was forced to compromise on some key provisions to push it through a hostile Congress. Provisions stripped from the final version included extended paternity leave, paid leave for women with debilitating menstrual pain and some collective bargaining rights for unions. The signing of the law comes at a tumultuous time for the third largest nation in Latin America, with a wave of bombing attacks shaking the northeast and an assassination attempt on conservative presidential hopeful and senator Miguel Uribe stunning the country. Uribe remains in intensive care.
Washington Post
26-06-2025
- Business
- Washington Post
Colombia's president signs a labor overhaul into law after 2 failed attempts
BOGOTA, Colombia — Colombian President Gustavo Petro signed into law on Wednesday a controversial labor overhaul with the potential to profoundly shift the balance of power from employers to workers, a key victory for the left-wing leader even as Congress compelled him to scale back his more radical ambitions. The enactment of the law marks a milestone for a president who has struggled to deliver on his promises to reduce inequality in one of the region's most unequal nations. But it's faced opposition from business leaders and Colombian government bonds have suffered as markets worry about the fiscal and economic effects.
Yahoo
26-06-2025
- Business
- Yahoo
Colombia's president signs a labor overhaul into law after 2 failed attempts
BOGOTA, Colombia (AP) — Colombian President Gustavo Petro signed into law on Wednesday a controversial labor overhaul with the potential to profoundly shift the balance of power from employers to workers, a key victory for the left-wing leader even as Congress compelled him to scale back his more radical ambitions. The enactment of the law marks a milestone for a president who has struggled to deliver on his promises to reduce inequality in one of the region's most unequal nations. But it's faced opposition from business leaders and Colombian government bonds have suffered as markets worry about the fiscal and economic effects. The law increases overtime pay for salaried workers and limits the use of short-term contract workers, while requiring companies to provide medical coverage and social security for gig workers like food delivery drivers. It also promises student interns proper contracts and benefits like vacation time and severance pay. Many of Petro's efforts to vastly expand social programs have stalled in Congress, with lawmakers shooting down this labor law twice. Lawmakers let the legislation squeak by last week after Petro's moved to call a public referendum. Petro signs the law at the home of Simón Bolívar Petro signed the legislation at the historic home of 19th-century war hero Simón Bolívar, who led South America's fight against imperial Spain. He posted on social media platform X: 'I sign the labor reform into law before Bolívar and the working people.' 'We must elect a government that will uphold this law and enforce it,' Petro said, alluding to the 2026 presidential elections. Opposition says the law will hurt employment The reform was cheered by trade unions and Petro's political allies Wednesday. But his push to strengthen worker protections has proved controversial, as the expensive benefits are expected to hike up costs for business owners. Petro's government has promised to push through a new bill to help small businesses, though the details remain unclear. Opposition lawmakers have painted a nightmare scenario of mass layoffs that will push more workers into Colombia's already vast informal economy. Many say that the mandated reductions in working hours, increases in overtime pay for Sunday and holiday shifts will especially squeeze small and medium-sized businesses. Already, his government's increased spending and reduced tax income have challenged fiscal stability. Critics also say that the changes won't help informal workers without contracts, who represent over half of Colombia's total labor force, according to the latest figures. The legislation guarantees health and pension benefits for only some gig workers, such as app-based delivery workers. Then there's the question of compliance. 'I want to tell those employers who say they won't implement the labor reform that they're not intelligent,' Petro said on Wednesday. Petro had to scale back the law to get it through Even as he hailed the law, it fell short of Petro's ambitions. He was forced to compromise on some key provisions to push it through a hostile Congress. Provisions stripped from the final version included extended paternity leave, paid leave for women with debilitating menstrual pain and some collective bargaining rights for unions. The signing of the law comes at a tumultuous time for the third largest nation in Latin America, with a wave of bombing attacks shaking the northeast and an assassination attempt on conservative presidential hopeful and senator Miguel Uribe stunning the country. Uribe remains in intensive care. The Associated Press Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Bloomberg
18-06-2025
- Business
- Bloomberg
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.
Reuters
18-06-2025
- Business
- Reuters
Colombia's Senate approves labor reform amid tension with Petro
BOGOTA, June 17 (Reuters) - Colombia's Senate on Tuesday approved a modified and much-debated labor reform bill, after President Gustavo Petro decreed a referendum to seek direct approval from voters for the initiative. The bill, which includes measures to enshrine an eight-hour daytime work day, increase weekend and holiday pay and require social security payments from delivery app drivers, was approved by 57 lawmakers, while 31 opposed it. Petro decreed the 12-question referendum last week, in a bid to force the Senate to vote on the reform before the end of its session on June 20 and in defiance of his political opposition, who say the vote would disregard institutional norms and threaten Colombia's separation of powers. Lawmakers in May rejected the referendum in a tight 49 to 47 vote. Petro said that vote was fraudulent and decreed the referendum take place. "The government is satisfied, we have managed, vote by vote, article by article, a new democratic, progressive labor legislation," Labor Minister Antonio Sanguino said. The approved reform will immediately increase wages for work conducted from 7 p.m. onward and gradually increase the surcharge for Sunday and holiday work through July 2027. Under the law, workers for popular delivery apps like Rappi, who are independent contractors, will be required to make social security contributions. Meanwhile, the apps will be barred from demanding exclusivity from contractors and must provide human supervision of their algorithms. Analysts' estimates for increased labor costs as a result of the bill range from 6.8% to 35%.
