Textile Sector Needs More Job Flexibility

Because there is still no regulation for part-time employment in Guatemala, textile businessmen estimate that the country loses between 40 and 70 thousand jobs.

Tuesday, May 14, 2019

For representatives of the Costume and Textile Commission (Vestex), the high operating and labor costs in Guatemala cause businessmen to send cut pieces to Honduras, El Salvador and Nicaragua to be assembled.

Alejandro Ceballos, president of Vestex, explained to Prensalibre.com that "... Guatemala can take advantage in exports, because U.S. buyers will look to the region and especially to Guatemala to do business. Although the outlook is encouraging for this sector, not all of the positive impact on the country is staying, because between 40 and 70 thousand jobs are not being filled for lack of labor flexibility.

Ceballos added that "... With the current working conditions in Guatemala it is not possible to create jobs, therefore, the application of part-time is becoming increasingly necessary because neighboring countries are taking advantage of this advantage.

See "Guatemala Approves Part-Time Employment" and "Guatemala and the Part Time Employment Law".

The part-time employment situation in the country has been debated for years, because after multiple announcements and attempts to advance the issue being discussed in Congress, the law is still not a reality. However, with the resumption of the discussion of the issue this year, its implementation could be finalized in 2019.

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More on this topic

Textile Industry: A decade of Good Numbers

February 2020

Between 2010 and 2019 exports of textile companies in Guatemala reported an average annual growth of 2%, a rise that is attributed to demand from companies in the United States.

According to figures from the Bank of Guatemala (Banguat), the manufacture of clothing items was the sector that generated more foreign exchange during the past year, as revenues amounted to $ 1,397 million.

The Paradox of Labor Unions

October 2019

Arguing to defend "the interests of the workers", labor union groups in Guatemala filed an appeal against the recently approved agreement regulating part-time employment in the country, and in response, the Constitutional Court decided to temporarily suspend it.

After several years of discussion, on June 27, 2019 Governmental Agreement 89-2019 was published in the Official Newspaper.

Change Promise for the Labor Market

June 2019

Finally, in Guatemala the agreement was approved that will allow companies to hire part-time workers, which promises to be part of the solution to the unemployment problem affecting the country.

On June 27, Governmental Agreement 89-2019 was published in the Official Gazette, establishing the Regulations of Convention 175 of the International Labor Organization (ILO), which will regulate the hiring of part-time workers in the country.

Part-time work discussed in Guatemala

June 2008

The economic crisis has reactivated the dialog to allow part-time work in companies, through ratifying Agreement 175 of the International Labor Organization (ILO).

The possibility that a housewife might work several hours a day outside of the home, or that a student might choose a night-shift job to pay for his or her studies, or that a company contracts work only for the hours needed for its production are some of the benefits of part-time work.

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