There are sectors in the economy where a larger proportion of informality may be observed. The paradox is that those sectors are the same that need modern tools to manage work.

By Martín Padulla

Without any doubts, Latin America is one of the most beautiful regions in the world. Cultural wealth is immense and the amazing landscapes withhold every possible image, colour, flavour, weather and sensations, astonishing even those of us who were born here.

Besides, tourism is a major source of employment. Millions of people from all around the world come to visit a continent with an astounding history, an attractive present and a defiant future. Lots of young people from the region have great interest on tourism, as it fits many of the millennials needs: interaction with diversity, contact with the environment, flexibility, knowledge on other cultures and fun, to quote just a few.

In this context, there are youngsters who work during the South American winter season in the large Argentinian or Chilean ski centres and during the summer at the beautiful Brazilian or Uruguayan beaches. In Peru, there are those who work during the dry season in Machu Picchu and then, when the rainy season becomes a reality in the Sacred Valley, develop another activity either there or in another destination of this beautiful country.

A few days ago, the ILO’s Regional Meeting came to an end in Lima, and in its’ Declaration a call was made to battle informality. It was then that I wondered about the incentives there are for formality and pondered about the need to focus on those activities where this scourge has the greatest impact.

Paradoxically, in our countries, activities such as tourism, rural work or construction, which, due to the kind of business they conduct, have a temporality feature are the ones with the highest informality rates. The reasons are several: high labour costs, deficient or even null controls and outdated regulations.

On the other side, there is also a formal sector in the economy, regulated and controlled, which creates decent work, hires employees formally to place them with third parties for a determined period of time. This sector corresponds to temporary agencies, staffing companies –their denomination varies in each country-. ILO has developed a specific convention for the well functioning of this kind of companies: Convention 181 provides these companies the status of Private Employment Agencies and enables governments to articulate active employment policies through the interaction of public and private employment agencies.

Would it not be proper for a worker to have an employment contract and a formal employment relationship with one of these companies and for that company to appoint the worker to one user company during the summer (at the beach) and to another during the winter (at the snow-white mountains)? Would it not be the way to guarantee the protection of the worker, the flexibility needed by a company which bases its business of temporality, and the tax collection of the government through a controlled and regulated activity? Wouldn’t something similar occur when a worker develops tasks during sowing time at one place and then goes to work on the harvest of another? Or permanently protecting a worker by sending him to different construction according to the needs of projects?

Back on tourism, when one travels through the region mixed feelings arise. On the one hand an immense injection of culture and pleasure is experienced when interacting with amazing people and places. On the other hand, during conversations with people who work on tourism, injustice emerges and one detects there is a lot to do.

Solutions are at a reachable distance. It is about reducing informality and creating decent work. It is necessary to make the decision of grasping those solutions and making the most of them. For, as Guy Ryder said during his closure speech that is the only way we can strengthen our democracies and call our development a human development.

About Martin Padulla

Managing Director of staffingamericalatina. Martin Padulla is Sociologist (USAL), MBA (UCA) and labour markets expert. He published “Flexible Work in South America” and “Regulatory framework for private employment agencies in Latin America” two books about the new realities of work in Latin America.

mpadulla@staffingamericalatina.com

About staffingamericalatina

It is the unique independent digital media specialized in Latin American´s labour markets.

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