With the implementation of a new Labor Code, a process which previously took four years to complete can now be done in just over an hour.
According to the judge Mayra Woo, head of Fifth District Labour Court of Managua, this agility is thanks to the implementation of the Procedure Code, which came into effect on June 28 and aims to promote transparency, orality and immediacy.
As of May 29 a new Labour Code will come into force as well as the introduction of oral trials in labor lawsuits.
Labor trials are to be conducted orally, and the new Labour and Social Security Code of Nicaragua (Law 815) also allow workers to file their application before a judge verbally.
In the past, resolution of a labor case took six years, but with this new Code that time will be reduced to six months.
The U.S. is withdrawing from suing the Guatemalan State for breach of labor rules before an international tribunal provided by the DR-CAFTA.
"In order to prevent the creation of an international panel that could lead to Guatemala paying a penalty of up to $15 million for violating labor laws, the Government has agreed with the United States to abide by a commitment to a plan to implement policies respecting these rules ", reported Prensalibre.com.
Local and U.S. labor unions have filed a complaint with the U.S. Department of Labor for breach of the rules established under DR-CAFTA.
The U.S. Department of Labor has agreed to review a union complaint against the government of Tegucigalpa for breach of labor laws under the free trade agreement DR-CAFTA, according to an official announcement released today.
Guatemala is preparing a plan to inspect factories in order to avoid a possible arbitration, forced by the US, for non-compliance of labor standards under CAFTA.
The Labour Ministry is preparing a program to inspect working conditions in the textile factories which could take six months to complete. The plan must conform to the standards set by enterprises under the 29-89 scheme (Law on Promotion of Export Activity and Maquilas).
The government has made a committment to the E.U. to submit a reform bill and its regulations within 60 days, so as not to adversely affect the labor market.
The U.S. has complained since 2010 that the Guatemalan government has not ensured acceptable working conditions and rights of association for its workers.
"Regarding the issue, the document says: A company that wishes to be covered by Decree 29-89 should finance a fund in order to guarantee and cover the amount of compensation and other benefits that are unwaivable for workers".
The U.S. government believes that Guatemala has not taken sufficient measures to resolve problems with labour conditions.
In 2010 the U.S. censured the Guatemalan government for not ensuring acceptable work conditions nor rights of association for its workers.
According to an article in cnn review.com.gt, Ron Kirk, a representative of U.S. Trade, said in a press release, "Although Guatemala has taken positive steps in recent months, their actions and proposals have been insufficient to address what we see as systematic failures."