Raúl Ledesma: “The ceiling on profits is illegal, but the Court will decide”

Ecuadornews:

The Minister of Labor, Raúl Ledesma, talks about 5 current issues with Diario EXPRESO.

The payment of the profits approaches and there are still claims for the ceiling to the utilities.

The official position is respect for other functions such as the Court and the Assembly.

The previous minister took 5% of the profit ceiling .

Through a ministerial agreement, the Organic Law was reformed, which is legally impossible. Even though I am in favor of it, I could not do it; because a ministerial agreement cannot reform by any concept an Organic Law. But, that’s how it was done. Then, before leaving, the ceiling returned about 15%.

What do they ask of you?

A part of those affected request that through a ministerial agreement to violate the law and reform the Organic Law, that the ceiling is only about 10%.

What is your position?

What is done in Labor Justice is illegitimate. You cannot take a dollar out of your profits, but the Assembly allowed it and within that same Assembly there are those who agree that it must be reversed and they have not done anything.

The courts opinion

You can say that it is illegal to put a ceiling on 15% of the profits, which I believe should be resolved. Or, you can leave 10% for the roof. Or, you can solve that 15%. Now, if I return 5% by means of an agreement and the Court resolves that after 15% the profit ceiling was fine, the next day the IESS tells me: Mr. Minister, kindly return the millions you took from our money. And the Comptroller’s Office should tell me about embezzlement, for the individual use of public funds. Then, we will be respectful with what the Court decides.

On another issue, Ecuador has 4.6% unemployment, 24.1% unsuitable employment and 19.8% underemployment. To these figures the incoming migrants are adding up. What is the Ministry doing on this issue?

Since Monday, the inspections will be carried out at the national level, especially in Guayaquil, Quito and Cuenca, to ensure that the contracts of national and migrant workers are registered with the Ministry of Labor (…) The employer has 30 days to register the work contract. If he does not do so, he has a fine of 10 to 15 basic salaries, depending on whether he is a natural or legal person.

EXPRESO published that in Guayaquil about 40 complaints of migrants had been paid for less than what the law says. What is the situation in other cities of the country?

There are a similar number of complaints in Quito and Cuenca.

Let’s talk about the new Organic Labor Code, how is it going?  

We finished a first reception of proposals from the 24 provinces, together with the National Assembly. That was finished in December, we are in a process of systematization and in March we will present the draft.

There are analysts who say that there are 50,000 more public workers in the Government, what is the official figure? 

In May 2017 there were 480,475 employees and as of January 2018 it is 495,705. That is to say, that the increase is of 13,230 employees distributed in the following manner: in the Executive Function, 11,230 officials; in the Electoral Function, 1,120; in the Judicial Function, 690 and the Transparency and Social Control Function, 300. In the Executive Function that corresponds to us, 97% of the increase is found in the health areas, 6,062, most of them doctors and education, 3,064 teachers and national security, 1,741 and 3% in different institutions.

The figure is justified only in social areas. It has not been increased in advisors. We are in the policy of austerity, but what is not going to sacrifice is the issue of education, health and safety. These areas should reduce 5%, but not personnel; but of expenses and the rest of the areas must reduce 10%. The president was emphatic in saying that it cannot be reduced in social plans or in the quality of the social program. (I)

Source: http://www.expreso.ec/economia/entrevista-raulledesma-economia-ministro-trabajo-HC2051018