Working Hours Reduced for Survival

In the context of the economic crisis, it is estimated that companies in Central America have reduced the working hours of employees to an average of 32 hours per week.

Wednesday, July 22, 2020

As a result of the spread of covid-19 in the countries of the region and the imposition of strict home quarantines, demand for products and services has fallen considerably in most markets.

This scenario of social distancing and change in consumption habits has forced companies to adjust their operations in order to survive the economic and health crisis.

According to a survey conducted between June 15 and July 3 by the Federation of Business Chambers of the Central American Isthmus (FECAMCO), 84% of companies indicated that their sales have decreased.

Elfinancierocr.com reports that "... 77% of the companies indicated that they have reduced the working hours to approximately 26,000 employees, in what would be equivalent to 32 hours per week on average."

The article adds that "... the companies have great problems of liquidity and 44% said that they will request a credit to face their financial commitments."

Check out the "System for monitoring markets and economic situation in Central American countries", prepared by CentralAmericaData.



More on this topic

Labor Market: Revolution and Challenges

July 2020

Faced with the sudden change that the new normal generated in companies, employees are challenged to increase their skills to work remotely, adapt to more flexible contracts and refine their technological skills and cognitive qualities.

Telecommuting has become an everyday occurrence among companies in the region, which have had to adjust to the restrictions imposed by governments due to the outbreak of covid-19.

Bono 14 Payment: Agreement Suspended in Guatemala

July 2020

The Constitutional Court provisionally suspended the agreement that allowed companies that currently do not have the economic capacity to comply with the payment of the Annual Bonus, to reconcile the amortization of the obligation with the employees.

The agreement of the Ministry of Labor (Mintrab) 250-2020, which was published in the Diario de Centroamérica on July 10, stipulates that in order to postpone the payment of the Bono 14, employers who are not in a position to do so due to the economic crisis resulting from the outbreak of covid-19, could make an application to the Ministry.

Proposal to Ban the Dismissal of Workers

March 2020

After a home quarantine was decreed in El Salvador, the government intends to prohibit the dismissal of employees who do not attend work.

In the context of the crisis generated by the spread of covid-19, a proposal is being discussed that establishes that the employees of companies that are not allowed to continue their activities should be sent home with their salaries and benefits, and that they cannot be subject to dismissal, salary discounts or suspension of contract, nor be forced to take their vacation in advance.

Nicaragua: Formal Employment Drops Due to Crisis

May 2018

During the third month of 2018, the affiliation of 896,869 social security workers was registered, 1.5% less than was reported in March 2017.

The Central Bank of Nicaragua (BCN) reported that according to the administrative records of the INSS, in March the number of insured people was 896,869 workers, which is equivalent to a 1% drop compared to February 2018.

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