Labor Reform Bill Will Not Generate Employment in Colombia, Says FENALCO President

Jaime Alberto Cabal, the president of the National Federation of Merchants (FENALCO), stated on Friday that the government’s proposed labor reform bill would not lead to increased employment in Colombia. Cabal criticized the bill, which was presented in Congress the previous day, for its potential to create additional costs for the labor market, without addressing unemployment in the country.

Cabal cited the example of a neighborhood bakery, which normally operates until 9 pm. He explained that the bill would impose a nightly surcharge of 35% for those additional hours worked, adding a significant extra cost to the payroll. He argued that this would increase the total number of costs by 15% per week.

In contrast, Labor Minister Gloria Ines Ramirez hailed the bill as the most ambitious labor reform of the century. The proposed changes would modify contractual stipulations and working hours, according to Ramirez.

As the bill progresses through Congress, the government and business leaders will need to address concerns about its impact on the labor market and the economy as a whole.