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Little use of new forms of contracting in Ecuador

Posted On 10 Sep 2018

Ecuadornews:

After almost four months of entering into force, the Ministry of Labor records that barely 4% of labor contracts correspond to new forms of contracting by sector. Before they were 1%.

The minister of this portfolio, Raul Ledesma, acknowledged that this percentage is very low, so he considered that we must socialize more on the subject. The sectors that are using them the most are the floriculturist and banana grower, he said.

He said that so far there are no complaints about labor migration, meaning that from the indefinite contract to a temporary contract, an issue that worried the union sector of workers.

“It’s not that it reassures us but it does give us optimism to know that the private sector is not wrong using this tool (…). The relationship is direct and bilateral, “he added.

Eduardo Ledesma, representative of the Association of Banana Exporters of Ecuador (AEBE), said that these modalities are adjusted to the reality of the sector in addition to fulfilling labor and social obligations for those who even when working one day a week have the right to receive, proportionally, what by law is contemplated.

“For producers who have 1 or 2 days cut, maximum 3, is a very valid option to hire 30 to 40 people for a day and pay more than a surcharge salary, the proportional part of the thirteenth, fourteenth salary, reserve fund, insurance affiliation, “he said.

Holbach Muñeton, from the Chamber of Tourism of Guayas, estimated an increase in hiring in this sector with these new forms between 10% and 15% because there are facilities to acquire services. “The more modalities there are, the better because in tourism, for example, I have to adapt to the time, day and time of the tourist, who is the client,” he added.

He said that before maybe some companies did it informally. “It’s not that the sector worked with informality, but (…) with this range was improved and the one that was working informally was formalized,” he said. (I)

Source: https://www.eluniverso.com/noticias/2018/09/10/nota/6946853/poco-uso-nuevas-formas-contratacion

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