Overview
- After legislative gains, the administration says it will submit a labor reform bill that advances the ‘salarios dinámicos’ framework.
- Sectoral pay scales would shift from minimum floors to reference ceilings, allowing company or regional agreements to set terms within defined ranges.
- Salary adjustments would be tied to productivity and the financial capacity of firms rather than automatic inflation-based updates.
- The draft envisions shorter validity for economic clauses to force more frequent renegotiation and also contemplates dismissal funds replacing traditional severance.
- Unions and labor analysts warn of weaker guarantees and wider wage gaps, while business groups back added flexibility; roughly 64% of registered private workers bargain at the activity level versus about 4% at the company level.