Unions request more flexibility for unionization while business organizations demand ratification of ILO‘s Convention no. 175.  A proper complement to make the labor market more dynamic and increase formalization would be the ratification of ILO’s Convention no. 181.

Aura Leticia Teleguario, Minister of Labor, assures that reforms of the Labor Code are being discussed with stakeholders. There has been a growth of social dialogue in Guatemala. “Ratification of part-time work should be included among the changes”, she said.

The Ministry of Labor (Mintrab) is in a dialogue process with different sectors to introduce in 2017 a bill to the Congress of the Republic in order to modify the Labor Code.

Teleguario explained that “the current conditions of employers and workers must be analysed, so that adequate reforms are developed and implemented.”

In order to enhance compliance, the union sector presented suggestions to about labor legislation to Mintrab, following ILO’s road map, said Adolfo Lacs, of the Union Federation of Banking, Services and State employees (Fesebs). Among their demands, they request that an industry union can be created starting from 20 members and that a union leader may be foreign.

Antonio Malouf, directive at Vestex, said that the changes proposed include part-time work, with the ratification of ILO’s Convention no. 175 and the reform of the Labor Code. These changes in regulations will enable people to work less than 44 hours a week and still access every labor right and legal benefit.

In addition to these proposals, it would be important to ratify ILO’s Convention no. 181 on private employment agencies, to enhance their articulation with private employment agencies for labor intermediation and training for labor based on demand, particularly among vulnerable sectors.

According to Malouf, Inspector General must make a more empowered intervention, but avoiding being “judge and jury”. “It should have more power to do its work, but without making decisions against employers”, he claimed.

Lacs considers that the sanctioning capacity must be granted once again for the Inspector, so that it becomes the administrative entity that sets fines.

Guatemala has a great chance to modernise its labor markets and encourage formalization of labor and youth employment.