Economy Minister Luis CaputoHe provided details about the labor reform that is expected to enter Congress after December 10. Although there are still doubts about its implementation and usefulness, specialists see an opportunity.
Companies aspire to reform with a federal and sectoral focus, with the aim of creating job opportunities for young people and reducing unpaid labor costs.
What companies look at
Javier Fernández Verstegen is an employment law and labor relations specialist at Brons & SalasHe explained that labor reform that serves companies must take into account the differences between them: “There is no point in putting everyone in the same bag., The standards for multinational companies are different from those for SMEs. The challenge lies in how to develop a law that covers different situations in the economic size and at the federal level.
Although he welcomes reform because the laws regulating the labor market, such as the Labor Contracts Law, are more than 50 years old, what he considers essential for companies is “Legal certainty and pensions”. These two aspects trump labor reform, but Fernández Verstegen was optimistic that it could be achieved It will be compensated with a “legally sound repair.”
The main point that needs to be addressed, beyond what has been overlooked, is the need for it Simplify and modernize processes Outdated institutes.
“The concept of the company has changed. We have to aim – Simplifying procedures so that job opportunities are created without removing protection, The specialist pointed out that this is the principle that distinguishes labor law.
Fernandez Verstegen said one of the strengths of the reform would come from… Federalism. “There are problems with this perspective. Many productive centers have been created in the provinces where it is necessary to implement labor modernization that encourages youth employment.. Hand in hand, we have to discuss The educational system with unions To know the needs of the sectors.” The participation of governors in negotiations to approve the reforms could serve as a guarantee that this reform will include regional differences. The latter was expected before Historianwhich concluded a study by the Ministry of Liberation It represents regional differences in the face of national collective bargaining.
“The driver of employment will be SMEs, and SMEs not only need labor market reform, there must be a reduction in the tax burden.”but basically to simplify registration. “And to achieve this, an agreement between jurisdictions is needed,” added Fernandez Verstegen, who confirmed this. Coordination with provinces and municipalities on the tax burden, at least for small and medium-sized enterprises.
“The entities are fully aware of the matter The need for structural change To maintain employment resources. Many today seek rehabilitation, re-skilling and upskilling, i.e. upskilling.
In the case of multinational companies, Fernández Verstegen explained that although it is not strictly a question of costs, if they look at labor reform as a matter of guarantees to enhance investments, this implies knowing clearly what business dynamics will be adopted.
Termination boxes
“From the economy we will add to labor reform, If the numbers allow us Some guidelines that would further encourage formalization. “We are looking to reduce employer fees and replace them with a severance fund.” Caputo said in an interview with LN+.
A severance fund is already in effect and proposes that employers or workers can make contributions to an account (whether capitalized or not) from which eventual severances can be covered.
One advantage of the model is that it will allow for this Feeding the capital market through return-generating funds.
Although this procedure is in effect, no company has adhered to it. Among some of the flaws found was the cost of the form, but the employment lawyer who asked to remain discreet highlighted two flaws in the Minister’s proposal: On the one hand, it guarantees the existence of funds if a scheme that generates returns is implemented. On the other hand, one can see A Strong financing for the already hard-hit pension system in their income and with a greater presence of the treasury.
Moreover, it means a blow to groupas contributions and contributions to Social Security will account for 19% of the collection in 2025 according to the IARAF.
The sources explained that the request to transfer contributions to termination funds came from the private sector.
Given the existence of the cessation fund in its current form, but its success is limited, He requested permission to reduce contributions to replenish fundsespecially those that benefit. And so, Capital market growth would fuel credit again For the private sector, which was severely affected after the increase in interest rates.
“It’s mixing pears with apples,” said the employment lawyer who revealed it. Yes, the possibility of reducing employer fees is under discussion, Beyond this turn. Always, of course, To the extent that economic figures allow
This opens the door to negotiationWhat items will be downloaded? If it is Social Security that is defunded, solidarity fees, union or chamber funds will be abolished, or if negotiated to gradually reduce costs, with a greater impact on SMEs. The reality is that it will involve negotiations in which Cordero is not seen as the interlocutor. Perhaps it was this idea that prompted the Secretary of Labor to spend the afternoon on Tuesday at the Treasury Palace.
Dynamic salaries?
Minister of Labor, julio cordero, He was the one who put it Dynamic salarieswhere joint projects serve as a base while additional projects respond to productivity. The Ministry of Human Capital revived this initiative.
Those familiar with the negotiations confirm that this can be applied in the event of negotiation by the company, but that It must pass through the eye of Sturzenegger, who has influence on this project.
Perhaps the main thing under treatment is Agreement negotiations. The foundation of the business community is found in fact Privacy of sectors and companiesSome of them specialize in different branches. Negotiation by the company will allow elements such as dynamic salaries and compensation to be specifically adjusted.
Trade unions point out that this weakens collective bargaining and disempowers workers when negotiating with companies.
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