Fenalco to file nullity suit against union powers decree

The National Federation of Business Merchants (Fenalco) announced it will file a nullity lawsuit against Decree 234 of 2026, arguing the government exceeded its regulatory powers by changing collective bargaining rules without congressional approval. The group also requested provisional suspension of the decree pending resolution.

Jaime Alberto Cabal, president of Fenalco, led the announcement of the legal action before the contentious-administrative jurisdiction. According to the guild, the decree issued by the Ministry of Labor goes beyond regulating existing norms by creating an autonomous legal regime for collective bargaining, encroaching on legislative powers and altering Colombia's current labor framework. Fenalco particularly challenges the mandatory multilevel collective bargaining model, featuring unified bargaining demands, table, and convention—a structure not present in current labor legislation. This approach, the guild argues, redefines labor relations and revives content excluded during congressional debates on labor reform. The decree also burdens employers with new requirements, such as providing economic and strategic information, potentially undermining business freedom, trade secrets, and competitiveness by mandating disclosure of sensitive data without explicit legal backing. Further concerns involve syndical representation rules that could hinder smaller unions' influence, and the potential to impose economic burdens on non-unionized workers through sectoral collective conventions, impacting those uninvolved in negotiations.

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Colombian business leaders protesting outside the Constitutional Court, petitioning to block the government's economic emergency decree amid stability concerns.
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Business groups petition Constitutional Court to block Colombia's economic emergency decree

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Following Finance Minister Germán Ávila's announcement of an economic emergency to raise 16 trillion pesos for the 2026 budget, major Colombian business associations including Fenalco, Andi, and the National Business Council have urged the Constitutional Court to review and potentially suspend the measure, arguing it fails constitutional tests amid concerns over economic stability.

Jaime Alberto Cabal, president of Fenalco, filed a lawsuit with the State Council to temporarily strike down the decree raising the minimum wage by 23% this year. He argues the measure lacks technical backing and violates the legal framework. He warns it could lead to the loss of 772,340 jobs and the closure of numerous small and medium enterprises.

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Chilean business guilds voiced opposition to the government's announcement to introduce a ramal or multi-level collective bargaining bill on January 5, 2026, claiming it will have negative effects on employment. CPC President Susana Jiménez called it a political gesture unlikely to succeed, while Sofofa and CCS leaders warned of rigidities and costs for SMEs.

Seventeen Colombian governors, led by those of Antioquia and Valle del Cauca, have chosen to disobey a decree from Gustavo Petro's government that alters the liquor tax structure. They argue the decree causes irreparable damage to departmental funding for health and education. This action is backed by the Constitution for instances of poor government administration.

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Following President Gustavo Petro's declaration of a 30-day economic and social emergency, Colombia's Senate has approved summoning all ministers to a political control debate on December 29. The hybrid session, set amid legislative recess, aims to examine the fiscal crisis and the decree's implications after Congress rejected tax reforms.

Spain's Constitutional Court plenary has decided to maintain the suspension of a law modifying the institutional participation of unions and employer groups in the Murcia Region. The Government appealed it in October 2025 for invading state competencies and removing the parity principle in subsidies. The suspension will last until a final ruling.

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The Chamber of Deputies began debating the labor reform on Thursday, February 19, 2026, achieving quorum with 130 lawmakers thanks to support from allied and provincial blocs. The ruling party defends updating 50-year-old regulations, while the opposition criticizes the loss of rights and questions the rushed process. Outside the chamber, protesters rallied against the bill, leading to clashes with police.

 

 

 

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