Labor Reactivation Panel delivers 22 proposals to Work Minister

The Labor Reactivation Panel delivered a report with 22 proposals on Monday to Minister Tomás Rau to tackle unemployment that reached 9.4% between March and May.

The report, divided into five axes including promotion of female employment and labor regulation, was presented by Cecilia Cifuentes, director of ESE Business School at Universidad de los Andes.

Cifuentes stated that “when one makes dismissal too difficult what one does is make hiring difficult”. She also highlighted the need for greater flexibility in the 40-hour work week, suggesting it could be set over a period of up to 52 weeks for seasonal sectors.

The measures aim to reduce the judicialization of dismissals and question the functioning of the Karin Law. Most do not generate significant fiscal cost, according to the document.

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Labor Day rally in São Paulo where workers, unions, and politicians demand an end to the 6x1 schedule and a 40-hour workweek cap.
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Government bets on worker pressure to end 6x1 schedule on Labor Day

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On Labor Day, Lula government ministers called for societal mobilization to pressure Congress to vote on ending the 6x1 schedule. Rallies in São Paulo and Rio gathered workers, unions, and politicians advocating for a 40-hour weekly cap. Chamber president Hugo Motta sped up proceedings by scheduling extra sessions.

Labor Minister Tomás Rau announced the government is analyzing a new labor indemnity system covering all types of contract terminations. The proposal aims to reduce costs for companies through contributions to individual accounts.

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The government began on Friday the process for two judges nearing 75 to remain in office, including Víctor Arturo Pesino, who upheld the labor reform. Pesino signed with María Dora González the ruling suspending a precautionary measure against the law. The CGT criticized the decision and plans to appeal.

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