As the pandemic has changed the ways of accomplishing tasks and telecommuting has gained ground in all markets, flexibility in terms of where and when to work will be one of the factors most valued by employees in this new reality.
The threats caused by the spread of Covid-19, caused companies globally to look for new ways of working. Most teams chose to readjust their dynamics and focused on promoting remote work.
Arguing that the regulations contradict some articles of the Political Constitution, in Guatemala union groups brought an action against the agreement that allows companies to hire part-time personnel.
After years of discussion, on June 27th Governmental Agreement 89-2019 was published in the Official Gazette. This Agreement establishes the Regulations of Convention 175 of the International Labor Organization (ILO), which will regulate the hiring of part-time personnel in the country.
Although working from home is considered a non-wage incentive because of the flexibility and benefits it provides to the employee, this mode of work is not yet a trend for companies in Guatemala.
Implementing work from home or home office, is a modality increasingly popular among executives and professionals who see the benefits that telecommuting provides.
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.
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.
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.
While the unemployment rate remains the lowest in Latin America, an even greater level of preparedness of the workforce is needed to achieve dynamic and sustainable growth.
According to an article in Capital.com.pa the rate of employment growth is no longer parallel to economic growth, noting that "According to official figures, between March 2012 and March 2013 there was a decrease in the labour force of nearly 7,000 jobs. "
Laws restricting the recruitment of foreign personnel are obstacles to competitiveness and development.
In Panama, only 10% of staff may be foreign. According to some economists and managers, this reduces the competitiveness of financial sector companies.
When consulted, the economist Ruben Lachman said the laws that establish the 10% limit are a burden.
The Chamber of the Textiles, Clothing and Free Zones has presented a new proposal for the sector.
In 2010 the chamber had proposed a change in working hours from the 3.5 x 3.5 scheme, which means that employees work three and a half days and then rest for the same period of time, to change to working eight to twelve hours daily. This proposal has not been approved by the Ministry of Labour.
The proposal presented by the Textile Industry Chamber did not receive support from the Ministry for Employment.
The plan promoted by the industry is for a change in working hours from a three and half day week to eight hours daily.
"Patricia de Figueroa, the Chamber's executive director, stated that the plan did not receive the backing required from the Ministry for Employment, which described it as unconstitutional," reports Elsalvador.com.
Inflexible labor legislation is making the textile industry less competitive.
Markets such as Honduras and the Dominican Republic have already had 12-hour working days approved and as a result have seen export orders increase. This in turn has meant more jobs - 10,000 new positions reported in Honduras in August.
"The loss of contracts is the concern of Edwin Zamora, president of El Salvador's association of textile and apparel manufacturers (Camtex), who has reiterated his call to the government for a longer working day of 11 or 12 hours in order to be able to accept orders still arriving from the USA," reports Elsalvador.com.