Asuncion, IP Agency.– The President of the Republic, Santiago Peña, called for opening the debate on the reform of the Labor Code in order to create the 500,000 jobs that the Government has projected for the next four years. He affirms that the objective is to improve working conditions; “I will never propose a law that is detrimental to workers,” he said.
“The Labor Code in Paraguay is more than 50 years old, and it dates back to a Paraguay that was totally different from the one we have today,” said the president at the event celebrating National Industry Day on Friday night at the Paraguayan Industrial Union.
He said that Paraguay has the potential to generate 500,000 jobs in the next four years, but that at the current rate of creation, that figure will not be reached.
“This past year, between 25,000 and 30,000 new formal jobs were created. At this rate, we will continue to improve the quality of life of Paraguayans little by little, but the pace at which we are advancing and progressing is not enough,” he said.
In this regard, he called for all sectors to address the debate on the reform of the Labor Code, stating that “we must be willing to take disruptive measures, to evaluate ourselves, to see where we are failing.”
“Unfortunately, our labor market is going through a bad time, and it’s not that it was poorly designed, the problem is that it is outdated,” Peña said.
In this regard, he said that one of the major problems facing Paraguay is the challenge of increasing the real wages of workers, who face “a leap into the abyss” when they reach the threshold of job stability established in 10 years of sustained employment.
Upon reaching that threshold, “the vast majority are fired, very few can retire, almost no one can withdraw their contributions that they deposited for nearly 10 years, and reintegration into the workforce is very difficult,” the president described.
In raising this debate, the president said, “the aim is clear: to improve working conditions, to support workers, to improve workers’ salaries, to strengthen the rights of our workers.”
“Whoever thinks that a change could be detrimental to workers, it is precisely the workers that we want to support, it is the workers for whom we want to create conditions so that their wages can improve,” he stressed.
He also said that the private sector has been warning that, in this context, “they are losing highly valuable human capital, who recruit them, train them, educate them, gain their trust and, with pain in their souls, have to fire them to avoid endless litigation tomorrow.”
Peña said that “it is important that we have a dialogue about how we want to develop the Paraguayan labor market because simply sweeping this issue under the rug will not solve it.”
“If we just do the same thing we did 50 years ago, there will be no change,” he added.
The president said he was determined to open this debate, in which the labor unions must be present and actively participate. “They must actively sit at the table, they must help us reflect on the problem because they are the main ones who suffer from this problem,” he said.
He called on the private sector to be part of this discussion and specifically asked the UIP to open this dialogue with the trade unions.
He called for “using tripartite tables that bring together the government, workers and employers to address this problem” insisting that the objective is “to improve working conditions.” “I will never propose a law that is detrimental to workers,” he said.
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2024-09-16 23:28:11
– What are the main goals of Paraguay’s President regarding labor code reform?
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Paraguay’s President Calls for Labor Code Reform to Create 500,000 Jobs
Asuncion, Paraguay – In a recent address, President Santiago Peña urged for the reform of the Labor Code to create 500,000 jobs in the next four years. The President emphasized that the current labor market is outdated and in need of disruption to improve working conditions and support workers.
The Paraguayan President highlighted that the Labor Code, which has been in place for over 50 years, was designed for a different era and no longer reflects the country’s current economic landscape. He stressed that the country has the potential to generate 500,000 jobs, but at the current rate of creation, that figure will not be reached.
The Need for Reform
President Peña pointed out that the labor market is facing significant challenges, including the issue of real wages for workers. He explained that upon reaching the threshold of 10 years of sustained employment, many workers face a “leap into the abyss” as they are often fired, and few can retire or withdraw their contributions.
The President emphasized that the aim of reforming the Labor Code is to improve working conditions, support workers, and strengthen their rights. He assured that any changes would not be detrimental to workers, but rather aimed at creating better conditions for them.
Private Sector Concerns
The private sector has also warned about the loss of valuable human capital due to the need to fire employees to avoid litigation. President Peña acknowledged these concerns and stressed the importance of having a dialogue about how to develop the Paraguayan labor market.
The Role of Labor Unions
The President emphasized the need for labor unions to actively participate in the reform process. He encouraged them to sit at the table and help reflect on the problem, ensuring that any changes benefit workers.
A Call to Action
President Peña’s call for labor reform has sparked a national debate about the need for change in the labor market. With the goal of creating 500,000 jobs in the next four years, the President’s initiative aims to improve the quality of life for Paraguayans and drive economic growth.
Keywords: Labor Code, Labor Reform, Job Creation, Paraguay, Santiago Peña, Working Conditions, Labor Unions, Private Sector, Economic Growth.
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What are the main objectives of President Santiago Peña’s proposed Labor Code reform in Paraguay?
President Santiago Peña Calls for Labor Code Reform to Create 500,000 Jobs in Paraguay
In a recent speech at the Paraguayan Industrial Union, President Santiago Peña emphasized the need for reforming the Labor Code in Paraguay, citing the country’s potential to generate 500,000 new jobs in the next four years. The current Labor Code, which dates back over 50 years, is outdated and hinders the creation of better working conditions and higher wages for workers.
Outdated Labor Code Holds Back Job Creation
President Peña stressed that the current rate of job creation is not sufficient to reach the government’s projection of 500,000 new jobs. Last year, between 25,000 and 30,000 new formal jobs were created, but at this pace, the goal will not be achieved. The president believes that a comprehensive reform of the Labor Code is necessary to address the challenges facing Paraguay’s labor market.
Reform Aims to Improve Working Conditions and Wages
The president emphasized that the aim of the reform is to improve working conditions, support workers, and increase their wages. He acknowledged that one of the major problems facing Paraguay is the challenge of raising real wages for workers, particularly when they reach the threshold of job stability after 10 years of sustained employment. At this point, many workers are fired, and few can retire or withdraw their contributions. The president wants to create conditions that would allow workers’ wages to improve and make it easier for them to re-enter the workforce.
Private Sector Losing Valuable Human Capital
The president also highlighted the concerns of the private sector, which is losing highly valuable human capital due to the current labor market conditions. Many workers are recruited, trained, and then lost due to the lack of opportunities for advancement and better wages. This brain drain is detrimental to the country’s economic growth and development.
A Call to Action for All Sectors
President Peña called on all sectors to engage in a debate on the reform of the Labor Code, emphasizing the need for “disruptive measures” to address the challenges facing the labor market. He assured that any reform would be designed to benefit workers, not harm them, and that the government is committed to supporting workers and improving their working conditions.
President Santiago Peña’s call for Labor Code reform is a crucial step towards creating better working conditions, higher wages, and more job opportunities for Paraguayans. The government’s commitment to supporting workers and improving the labor market is essential for the country’s economic growth and development.
Keywords: Labor Code reform, job creation, working conditions, wages, Santiago Peña, Paraguay, economic growth, development.