Former general manager of the Central Bank and dean of economics at the PUCMM University, Pedro Silverio writes in Diario Libre today about the dilemma that the unemployed are not represented in Labor Code talks.
In the op-ed piece, Silverio comments on the difficulties in reducing unemployment in the Dominican Republic. “Every day it is more difficult to find a job. When that person stops looking for work, then the unemployment statistic is reduced,” comments Silverio. He says throughout the times the work market is marked by rigidness that impedes the healthy creation of jobs. As a result, he said the poor and unemployed are potential clients for political patronage when they do not find work.
“A flexible labor market is fundamental,” he writes, commenting this is more obvious in times of crisis and presents the case of Spain for parallels to be drawn.
The Medina administration has created conditions for a reform in the labor code, after 20 years of its implementation. Talks are ongoing.
“A reform should not be made to leave things the same. Extra labor costs are, precisely, one of the reasons to carry out the reform,” he writes.
He explains that the Regional Center for Sustainable Economic Strategies (CREES) statistics indicates that worker additional benefits and costs are 69.9% of the wage at the end of a first year, but increase to 222.79% at the end of 20 years at the job.
“Nobody, in their sane judgment, can have the idea that it is possible to disregard these rights, on the contrary, the idea is to establish new reference base for the hiring of the work force,” he explains.
“Unfortunately, those who will benefit most, the unemployed, are not sitting on the table of negotiation,” he writes. He explained the thousands of youths that have not been able to find work due to the obstacles to job creation. He explains that while the increase in labor costs benefits those who can keep their jobs, it is no less true that companies find themselves in the dilemma to reduce their payroll, their capital spending or increase the rate of exploitation of their workers, rather than hiring new people.
He said in Spain a similar negotiation process has taken place. At the end, President Mariano Rajoy applied what he considered was most convenient for the country.
“Perhaps President Medina can take advantage of that experience. Thousands of unemployed will appreciate it,” he concludes.
http://www.diariolibre.com/opinion/2014/04/11/i563971_propsito-reforma-laboral.html