The section in this entry titled "Labor" provided the following information:
Under Chávez, Venezuela has also instituted worker-run "co-management" initiatives in which workers' councils play a key role in the management of a plant or factory. In experimental co-managed enterprises, such as the state-owned Alcasa factory, workers develop budgets and elect both managers and departmental delegates who work together with company executives on technical issues related to production.
In November 2010, following the expropriation of U.S. bottle-maker Owens-Illinois, workers spent a week protesting outside factories in Valera and Valencia.
Given the recent developments in the economic condition of the country, it was quite difficult for me to understand why the last information entered was from 2010. This section was begging for an update and so I decided to make a short addition to this Wikipedia entry. Below is my contribution to the "Labor" section of the "Economy of Venezuela" Wikipedia entry.
Labor disputes have continued to increase since the financial crisis in 2008. With inflation at over 56% and widespread shortages of basic goods, even the government has admitted that productivity is low. According to The World Economic Forum, Venezuela is ranked as 134th of the 148 countries for economic competitiveness. Many in the private sector attribute these findings to the inflexible labor market.
In recent years, a barrage of pro-worker decrees have been passed. The most significant could be the 2012 labor laws known as the LOTTT. These laws included the virtual ban on dismissal, shorter work week, improved holidays, and enhanced maternity benefits. The LOTTT offers job security to most workers after the first month. Employers have reported an absenteeism rate of up to 40% which they blame on the leniency of these labor laws. As expected, employers have been less willing to recruit.
On November 17, 2014, the President of the Republic issued a decree to increase the minimum salary for all workers by 15%. The decree became effective on December 1, 2014.
As you can see, I added some of the recent labor laws that have contributed to the current state of the labor market. It is important not only to know what is going on in this sector, but also to have an understanding of when these laws came to be and how the same have affected employers and employees alike.
Sounds to me like a lot has happened that needed to be documented. With the LOTTT, does that stand for something?
ReplyDeleteLOTTT stands for "Ley Organica del Trabajo, los Trabajadores y Trabajadoras" which translates to Organic Law of Labor and Employees.
ReplyDelete