Four Andean countries have jointly formulated proposals to create more formal employment. The white paper containing the proposals was first presented the 3rd of March in Colombia, during a congress of the employers' organization ANDI. The production of the white paper was supported by DECP.
Over 60 to 70 percent of the employment in the Andean countries of Peru, Bolivia, Ecuador and Colombia consists of informal jobs. These are jobs that are not seen by the authorities and for which no taxes or social security contributions are paid. On the other hand, informal workers also lack social protection. This problem became especially clear during the lockdowns during the Covid pandemic.
During 2021, the employers’ organizations CEPB, CIP, ANDI and SNI from Bolivia, Ecuador, Colombia and Peru respectively met virtually several times to analyse the situation in the various countries and to formulate proposals for improvement. At the request of CESLA – the ANDI research bureau - has elaborated the results of these sessions in a white paper.
The analysis shows that the problems of hiring, personnel costs and layoffs are very similar in the four countries. Precisely because there is little social protection, the legislation is aimed at protecting workers and making dismissal very difficult. To break this stalemate, seven proposals have been developed that can serve as the basis for new employment policies in all Andean countries.
1. Invest in labour-intensive sectors
2. Make it easier to pay for work based on hours or tasks
3. Protect the job, not just the employee
4. Reduce the cost of labour
5. Simplify Social Security Payments
6. Work on social protection at national level
7. Work on regional cooperation
The report Nuevas politicas de empleo para la región Andina 2022 was presented on March 3 during the ANDI congress for labour lawyers in Barranquilla (Colombia). Soon the proposals will also be formally presented in Ecuador, Peru and Bolivia.