2024-02-21 20:18:43
Workers’ and business unions have not yet defined whether they will campaign in President Daniel Noboa’s 2024 popular consultation and referendum, but what they are clear about is the position they will take on questions related to hourly and fixed-term contracts, as well as to international arbitration.
The union centers question the implementation of hourly and fixed-term contracts, as they assure that work will become precarious, while employers support seeking to recognize international arbitration as a method to resolve investment, contractual or commercial disputes.
For April 21, it is expected that 13,654,291 Ecuadorians will go to the polls to vote, this after the president signed executive decrees 162 and 163, with which he ordered the National Electoral Council (CNE) to call for consultation and referendum.
There are eleven questions that will be raised in the popular consultation and referendum, and in the latter there are four, of which two are the subject of analysis directly in the economic field:
- Do you agree that the Ecuadorian State recognizes international arbitration as a method to resolve investment, contractual or commercial disputes?
- Do you agree with amending the Constitution of the Republic and reforming the Labor Code for the fixed-term and hourly employment contract, when it is concluded for the first time between the same employer and worker, without affecting the acquired rights of the workers? workers, in accordance with Annex 4?
Hourly and fixed-term contract
The Confederation of Free Trade Union Organizations (Ceosl) “has not yet made the decision to enter a campaign process linked to yes or no.” However, “we have our opposition to fixed-term and hourly contracts,” says its president, Marcela Arellano.
And they have expressed it both in the friend of the court that they sent to the Constitutional Court (CC), in which they indicated that fixed-term and hourly contracts “do not generate employment,” that jobs are generated by strengthening the productive apparatus and what these modalities do is “make the job precarious.” job”.
For his part, the president of the Ecuadorian Confederation of Unitary Class Organizations of Workers (Cedocut), Mesías Tatamuez, points out that they are not opposed to changes in the laws, they have even proposed that “there be a new Labor Code,” but he considers It must be taken into account that laws are not what generate employment but rather a stable economy. “Now it is said that hourly work and new hires are what provide jobs, we say: ‘false, it is a lie.'”
Tatamuez assures that “no one is against” combating insecurity, generating employment, for better education, but that this is not the way.
In the case of the hourly contract -Arellano says- that “the work that already exists will be divided and new sources of employment will not be generated” and that it will affect women above all, since “they are always at the base of the labor pyramid.” , located in the worst jobs and these types of precarious contracts are the ones that women access the most, so for us the hourly contract is a great concern.”
And a similar scenario is seen for young people, according to the leader, they are the ones who would enter this new system and raises questions about what will be the contribution to the Ecuadorian Social Security Institute (IESS)? How will it be guaranteed that these workers have access to safety, health and how will it be verified that employers pay for the insurance? In that sense, she points out that “there is no clarity about this and the social security of these workers will also be affected.”
Tatamuez has a similar question regarding how the issue of social security for workers with hourly contracts will be handled. “They say that they are going to join the insurance, that they are not going to lose their rights, we ask how? That is the great concern that we must have, not only the unions but the majority of the people, because we as Cedocut do want there to be more social security affiliates with their basic salary.”
Arellano indicates that the economy in general needs “subjects who can contribute to the economy, that is, consumers”, however, he believes that people who are in hourly and fixed-term contracts “cannot be subject to credit, therefore “there will be restrictions on consumption, debt and life planning”, which is why he considers that “not only is the individual rights of workers and their families violated, but it also has an impact on the economy, so Therefore we will obviously position ourselves against this question.”
It also points out that hourly workers “will not even be able to reach the unified basic salary, which is below the basic family basket” and that they will also lose vacations, holidays, and overtime. Likewise, that the “Ministry of Labor does not have the capacity, not because of the minister because she has good will, but the ministry lacks the capacity to ensure that these workers have access to this type of cost per hour, because even now they cannot control workers who are in a dependency relationship.”
Tatamuez considers that the budget for the popular consultation and referendum, $60 million according to the CNE, should have been allocated to other areas that are really needed, such as security, production, education, health, etc.
On the other hand, labor experts highlight that the question is included in reference to hourly and fixed-term contracts, as long as the rights of workers are respected, since Ecuador is “years behind with respect to new forms of contracting.” that there is in the world.”
For this Friday, February 16, at 10:00, the Unitary Workers’ Front (FUT) will hold a meeting and according to Arellano, “probably there they will discuss some ideas about the participation of the union centers in the electoral process in the consultation with the position of no to the question of the hourly and fixed-term contract.” While Ceosl plans to meet next week.
International arbitration
In the question for international arbitration to be recognized as a method to resolve investment, contractual or commercial disputes, the vice president of the Chamber of Energy of Ecuador (CEDE), Roberto Aspiazu, comments that the question has not “yet been raised.” registration, but they have “a favorable position for the scheme of having international arbitrations to increase investment in the country.”
The president of the Ecuadorian Business Committee, Miguel Ángel González, agrees with this criterion, and assures that in relation to this question they are in favor of yes.
The CEDE did not register, but was active on social networks in the stance for the no in the popular consultation proposed to stop the extraction of oil in block 43 ITT, which was held with the early presidential elections on August 20, 2023 The yes won with 5,541,585 votes (58.95%), while the no obtained 3,859,507 votes (41.05%).
According to Aspiazu, in the country there is a lack of foreign investment mainly to promote large public investment megaprojects with private capital and to achieve that objective it is very important that these investors have that guarantee, “so if that is going to be consolidated through a popular consultation, I think that is indicated” and believes “that it is a step towards modernity.”
In that sense, it indicates that it is important to strengthen the scheme, because within the framework of international agreements this is required. Furthermore, he comments that in some way the issue is already being validated because when the Constitutional Court approves international treaties, “in the framework of the dispute resolution chapter it includes arbitration issues.”
González adds that in an increasingly interconnected world, where commercial relations transcend borders and jurisdictions, international arbitration is the indispensable mechanism to guarantee legal security and promote trust in international business and adds that “currently it is not very attractive for the “State is judge and party since a conflict of interest is generated.”
Although the question is positive for generating foreign investment, according to businessmen, experts have indicated that international arbitration is an issue that could be discussed in the National Assembly and not necessarily through a referendum, which could have been focused from another aspect if The aim is to offer greater stability to foreign investment.