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/ Wednesday, November 3, 2021
The cost of doing business will continue to rise in Puerto Rico with the new Labor Reform measure, says private sector leaders. >AP Photo/Steven Senne
Governor Rejects Double Overtime Pay and Eliminating ‘Flextime’
Private sector raises ‘red flag’ warnings on new labor reform
T Rosario Fajardo
rfajardo@wjournal.com
@RosarioWJournal
he Puerto Rico House and Senate are contemplating amendments to the 2017 Labor Reform Law, which include substantial changes that would affect the private sector. To that end, Gov. Pedro Pierluisi sent a letter over the weekend to the heads of both legislative bodies in which he listed various aspects of the new Labor Reform effort that he believes should be reviewed so that they are tempered with “the current reality of the labor market.” He objected to two proposals: double pay for overtime and eliminating “flextime,” which he said has been particularly beneficial for many workers during the coronavirus pandemic. The first executive mentioned that he seeks to establish a consensus on the changes proposed by the legislative piece so that it can count on his signature. Several private sector leaders have expressed concerns about the legislative proposals, saying they would be detrimental to economic development. “We cannot keep changing labor laws constantly. Maintaining a pattern of continuous changes destabilizes the economy at a time when we are recovering after the impact of the pandemic. We want to be an attraction for more companies to invest in our Island and for more people to join the working force,” said Iván Báez, president of the Retail Trade Association. “It is fatal to pass labor legislation independently, piecemeal, without a joint impact analysis. The cost of fringe benefits are based on wages and the Legislature just approved increases without due analysis,” echoed Manuel Reyes, vice president of the Food Marketing, Industry and Distribution Chamber.
Pierluisi emphasized that he considers it prudent that the Labor Reform be amended to standardize the requirement, applicable to all private sector employees, that they are entitled to receive the bonus for working at least 700 hours during the year in question. It should be noted that, currently, Puerto Rico’s labor laws require that employees hired before Jan. 26, 2017 work at least 700 hours a year in order to be entitled to the Christmas bonus. However, employees hired after that date have to work at least 1,350 hours to be entitled to Christmas bonus. Meanwhile, the governor stressed the importance of all workers having an adequate period of rest. “I support the amendment of the Labor Reform to decrease the requirement of hours worked per month to be able to accumulate vacation and sick leave. This requirement must be set again at 115 hours per month. Along the same lines, I support the amendment of the Labor Reform to establish that workers hired as of Jan. 26, 2017 can also accumulate one and one-fourth days of vacation for each month worked,” he added. In his letter to the legislative heads, Pierluisi mentioned that the amendments aimed at - Luis Gierbolini, Chamber of increasing the current pay of time and a half to Commerce president double pay for working in excess of eight hours a day, on rest days and during the meal period, could be detrimental to small and medium-sized businesses, so these changes do not have his endorsement. Pierluisi explains his position On the other hand, the governor also expressed In his missive, Pierluisi mentioned that a sixmonth probationary period is more reasonable for that he does not support the elimination of both exempt and non-exempt employees than the provisions that allow for flextime arrangements for workers. “My administration has always sought automatic nine-month probationary period.” This provides uniformity to the administration of human the balance that is required by promoting changes to strengthen our workforce and in turn, ensuring resources and therefore, an amendment to this that the commercial sector, especially small and end would have my endorsement,” the governor medium-sized merchants, can continue to create said in written statements. and maintain jobs to contribute to our economic Regarding the Christmas bonus which is growth,” Pierluisi said. regulated in accordance with Puerto Rico law, “We are surprised by these labor changes, whereby the opinion of the country’s productive sector has not been taken into consideration, at a time when we are recovering due to the effects of the pandemic and especially with a government that is bankrupt,” said the president of the Chamber of Commerce, Luis Gierbolini.
We are surprised by these labor changes, whereby the opinion of the country’s productive sector has not been taken into consideration, at a time when we are recovering due to the effects of the pandemic and especially with a government that is bankrupt.
