Companies think differently about labor reforms in Ecuador

Ecuadornews:

The debate on labor reforms becomes increasingly intense. There are opposing positions from several fronts. A survey by the consulting firm Deloitte to 164 Ecuadorian companies shows that there are no unanimous positions.

When asked if “Do you agree that 40-hour days per week can be extended until Saturdays, without implying that the employer has to pay more for the complementary hours?” 58% of the respondents answered that “Yes”, but 42% said “No”. Among the opinions in favor, it was indicated that this would allow adapting the schedule to personal needs and there would even be a reduction in costs for the company. Meanwhile, those who were opposed felt that this could result in a decrease in employee performance, generate demotivation; It was also indicated that it should only be applied in exceptional cases and that it would even affect the employee’s family relationship.

Meanwhile, 80% of respondents agree to increase the trial period before an indefinite contract is established. This reform is not among the consensual ones, but in the contract of entrepreneurship, in practice, the period could be assumed before the indefinite contract is made, it is three years. In any case, 64% of the companies said that the trial period should be six months; 22% established it in 1 year, 9% in nine months and two years, 4%.

On the other hand, for 91% of companies, teleworking could be a benefit without modifications in the contracts.

Chamber of Commerce of Guayaquil delivered 40 labor proposals to the President of the Assembly

Meanwhile, spokesmen of the textile sector yesterday considered that there should be further deepening in the proposed labor reforms. For example, in the topic of the special day, they state that their sector would need to have a schedule similar to that of the oil sector (21-7 or 14-14). They considered that the issue of employer retirement should be changed and unified. All this looking for greater productivity and lower costs, in order to be more competitive.

The Workers Unity Front (FUT) remains firm in the call for the national march for Thursday in rejection of the first three labor reforms that have been agreed in the National Labor and Wages Council and the 40 proposals presented to the president of the Assembly by the Chamber of Commerce of Guayaquil.

The president of the FUT, Mesías Tatamuez, insisted that they reject the proposals because they affect the earned labor rights and indicated that since last year they have requested an audience with President Lenin Moreno to give proposals on labor matters, but have not received a response.

While Richard Gómez, of the Central Unitaria de Trabajadores (CUT), pointed out that they support the proposals because they seek changes to improve employment conditions. “The idea is to support those who do not have a job nowadays”. (I)

Source:  https://www.eluniverso.com/noticias/2019/06/04/nota/7360653/empresas-piensan-distinto-sobre-reformas