Rejection of Petro’s labor reform sparks a political showdown

The rejection of President Gustavo Petro’s proposed labor reform by eight senators from the Seventh Commission of the Upper House of the Congress has sparked intense controversy. In response, Petro announced that he may call for a public referendum to allow voters to decide on the proposed changes.

While there is general consensus that labor reform in Colombia is necessary, disagreements persist over how to balance the interests of businesses, workers, and lawmakers responsible for enacting these changes. The government argues that the proposed reform aims to restore labor rights and enhance job stability, with a particular emphasis on promoting indefinite-term contracts.

Bruce MacMaster, President of the National Business Association of Colombia, ANDI, claims that President Petro’s government of failing to comply with the international agreements to which Colombia has signed, since two years have passed without holding a labor consultation. “We went to the International Labour Organization (ILO) to formally denounce the Colombian government for not advancing the consultation that should have been done by constitutional obligation and by the international agreements it has signed,” MacMaster told broadcasting network Caracol Radio.

One of the most debated aspects of the proposal includes changes to work hours and compensation. The bill proposed shifting the start of night shifts from 9:00 PM to 7:00 PM, which would require employers to pay a 25% surcharge for work beyond that hour. Additionally, compensation for work on mandatory rest days and holidays would rise from 75% to 100%.

Business leaders have voiced strong opposition to these provisions, arguing that they would lead to significantly higher labor costs and reduced productivity. Jaime Alberto Cabal, President of Fenalco, the national federation of merchants, stated that many small and medium-sized enterprises narrowly avoided a 30% increase in labor costs due to the bill’s rejection. “For the sake of Colombian workers, the unemployed, the informal sector, and small and medium-sized businesses, it is necessary to think carefully before approving a labor reform that is harmful to Colombia’s interests,” he said on a video shared on social media.

Alfonso Cuitiva, president of the board of directors of the Colombian Association of Retail Drugstore Owners (Asocoldro), noted that while the union agrees with improving workers’ conditions, it is also important to boost the entire productive sector, including microentrepreneurs, who are numerous in this country. “In fact, microentrepreneurs in this country generate more than 60% of employment. Small and medium-sized enterprises, together, generates almost 90% of employment in this country, and this is the sector most impacted by the labor reform,” Cuitiva said to Medellín newspaper El Colombiano.

Labor unions and social organizations, however, have fiercely condemned the Senate’s decision. The Comando Nacional Unitario, that gather Colombia’s major labor unions and pensioners’ confederations, called for a national mobilization on March 18th to demand that Congress “prioritize workers’ rights over business interests”.

Union leaders argue that the labor reform was an essential step toward social justice, aimed at reversing labor policies implemented through Law 50 of 1990 and Law 789 of 2002 under former President Álvaro Uribe. These laws, they contend, eroded job stability and social security protections. For labor activists, the rejection of the reform represents a victory for neoliberal policies that have perpetuated inequality and precarious employment conditions.

While officials aligned with President Petro are promoting mobilization in favor of the reform, other officials have shown their disengagement with these actions.

“On Tuesday, March 18th, Medellín’s public servants will work normally. We will not shut down educational institutions, health services or any other public institution. (…) May the economy continue to grow. May thousands of good-quality, well-paying jobs continue to be generated. There is no better social policy than job creation,” stated Medellin’s Mayor Federico Gutiérrez on X.

As the debate over labor reform continues, the divide between the government, business sector, and labor movements highlights the complexity of enacting meaningful changes in Colombia’s labor laws. Whether through legislative efforts or a public referendum, the issue remains a critical test for Petro’s administration and agenda.

Headline photo: Newly appointed Minister of Culture, Yannai Kadamani Fonrodona (third from the left in the front row), shared a video on her personal social media, calling for participation in the March 18 protests in support of the government and the labor reform. (Photo: X / @KadamaniYannai)