9 days ago - Politics and Society

The Non-Labor Reform of De Loredo.

By Mila Zurbriggen Schaller

The Non-Labor Reform of De Loredo.


Our country, having already entered the 21st century, needs new regulations to ensure good working conditions. Much is said about labor reform, but it seems that the one proposed by leaders like De Loredo is more tied to the reforms that the 20th century required of us than to the new jobs and the 4th industrial revolution in which we are transitioning to a new economic system.

Reduction of Fines and Simplification of Dismissals


De Loredo proposes to reduce fines for unregistered work, which would considerably decrease compensations in case of dismissal. Is this a relief for SMEs? Without a doubt. But it can also be an incentive for informality. In a country where undeclared work affects millions, shouldn't we be encouraging the exact opposite? Instead of lowering fines, we should be implementing measures that promote formal employment, such as temporary subsidies for new formal contracts or the digitization of the labor registration process to make it more accessible and less bureaucratic.


Trial Period

Extending the trial period from three to six months is another controversial point. It is true that it gives employers more time to evaluate their employees, but it also leaves workers in a position of greater uncertainty and vulnerability. In the 21st century, we need policies that better balance job stability with flexibility. A more modern approach could include continuous evaluations and training programs that increase worker employability, instead of simply extending a trial period.


Union Freedom and Education


Eliminating mandatory contributions from collective agreements sounds good in theory, but in practice, it can further weaken unions, which are already in a precarious position. Strong unions are necessary to balance the power between workers and employers. A 21st-century labor reform should aim to modernize unions, making them more transparent and efficient, not weaken them.


The proposal to declare education an essential service to limit strikes is another example of addressing a problem from the wrong perspective. Instead of restricting the right to strike, we should seek solutions that address the causes of strikes, such as salary improvements and decent working conditions for teachers. It is a short-term vision that can have long-term negative consequences on the quality of education.


 Optional Unemployment Fund


The idea of an employer-funded unemployment fund is interesting, but again, it does not address the root of the problem. Instead of patching the system with funds and insurance, we should be working on creating a more dynamic and resilient labor market. This includes investing in education and continuous training for workers, fostering innovation and entrepreneurship, and ensuring that labor policies are aligned with the demands of the global economy.


 What We Really Need


The true 21st-century labor reform should focus on: Continuing Education; Programs that allow workers to constantly update their skills. Digitalization and Automation; Leveraging technology to improve efficiency and transparency in the labor market. Flexibility with Security; Creating a balance where employers can adapt to economic changes without sacrificing workers' security. Inclusion and Diversity; Policies that promote the inclusion of women, youth, and other underrepresented groups in the labor market. Sustainability and Social Responsibility; Encouraging business practices that focus not only on profits but also on the well-being of employees and the community. De Loredo's reform seems more like a cosmetic adjustment than a deep transformation. If we truly want to enter the 21st century, we need policies that look to the future, not that recycle past solutions. The key lies in a comprehensive vision that contemplates not only cost reduction but also the improvement of job quality and long-term competitiveness.


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Mila Zurbriggen Schaller

Mila Zurbriggen Schaller

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