In a notable move for Colombia’s political landscape, President Gustavo Petro has officially enacted a polarizing labor reform law. This landmark legislation is designed to significantly shift the power dynamics in favor of workers over employers, representing a major triumph for the left-wing president, although compromises were made along his road to this achievement.
Despite facing significant headwinds from both business leaders and fiscal observers wary of the economic implications, Petro’s successful enactment of the law fulfills one of his core campaign pledges to reduce inequality in Colombia, a nation known for its pronounced disparity in wealth.
Under the provisions of the new law, salaried workers will see an increase in overtime pay and companies are restricted in their use of short-term contract workers. Furthermore, companies will now be required to extend vital benefits such as medical coverage and social security to gig economy workers, including those in food delivery. Additionally, student interns will now be entitled to formal contracts and benefits such as vacation time and severance pay.
Previously, Petro encountered legislative roadblocks with Congress, which twice rejected his labor proposal. However, a breakthrough was achieved after Petro leveraged the option of a public referendum, effectively mobilizing the legislature to advance the modified law.
The president chose the historically significant setting of Simón Bolívar’s residence for the signing ceremony. Bolívar, a revered 19th-century figure, is celebrated for his role in liberating South American countries from Spanish rule. In this context, Petro symbolically inked the law, invoking Bolívar’s legacy on social media by stating, “I sign the labor reform into law before Bolívar and the working people.” Petro also hinted at the urgency of electing a supportive government in future elections to ensure the law’s enforcement.
While union representatives and allies of Petro celebrated, the law has its detractors. Critics argue that the law poses potential risks for businesses by increasing operational costs, particularly affecting small and medium-sized enterprises. The government has expressed intent to introduce additional legislation aimed at supporting small businesses, though details remain forthcoming.
Skeptics caution that the enhanced worker protection measures, including increased overtime compensation for weekend and holiday work, alongside reduced working hours, could lead to widespread job losses. Such developments threaten to exacerbate Colombia’s already large informal economy. With fiscal stability already under pressure from rising government expenditures and reduced tax revenues, critics also question the practical benefits for informal workers, who account for a significant portion of Colombia’s workforce. Currently, the reforms offer health and pension benefits only to select gig workers, specifically app-based delivery drivers.
Petro openly criticized employers resistant to enforcing the labor reforms as lacking intelligence. Even though the legislation marks a step forward for Petro, it features compromises reflecting legislative realities. Concessions included the removal of proposals such as extended paternity leave, paid leave for women suffering from severe menstrual pain, and certain collective bargaining rights.
The enactment of this reform occurs against a backdrop of heightened national tensions. The country has recently been rocked by bombing incidents in the northeast, and there has been an assassination attempt on conservative presidential candidate and senator Miguel Uribe, who is currently in intensive care. Despite the challenges, Petro’s administration remains committed to its labor agenda.