Pared rejects labor proposal

[NewsWhore]

Senate President Reinaldo Pared Perez is firm in his stance that changes to the Labor Code would be untimely. Business associations are proposing changes, mainly in the area of accumulated severance payments that they say could cost the country thousands of jobs as companies take their business to the DR's competitors in Central America. The proposal, which was backed by the National Business Council, the DR Industries Association (AIRD), the Free Zones Association (Adozona), the Exporters Association (Adoexpo), the National Hotel & Restaurant Association (Asonahores), the Business Confederation (Copardom), National Association of Young Entrepreneurs (ANJE), and the Agribusiness Board (JAD) was presented on Wednesday. The business sector says that provisions in the Labor Code that date back to 1992 are an obstacle to competitiveness when it comes to doing business in the DR, especially now that the country is one of the most open economies in the Americas. Pared responded by saying that there was no way a bill aimed at changing workers rights and benefits could pass through Congress. Vice President Rafael Alburquerque told Hoy that the proposal must be reviewed carefully, especially in the context of the current world financial crisis. Labor Minister Max Puig told El Caribe that the reduction would not be prudent. He said the remedy to the competitiveness problems proposed by the business groups could be worse than the sickness given the global economic crisis. But he said he was open to study the proposal.
Businessman Jose Luis Corripio says that one solution could be to legislate for a conditioned rule where new employees would fall under a different regime, in order to encourage new hiring. This would be for temporary employees. After a fixed period, employers could decide whether to hire the employees permanently with full rights under the present law.

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