Shorter hours less pay for economic recovery

A  temporary reduction of the working day leading to smaller take-home pay is one of the agreements reached between employers and workers at the dialogue table for three groups seeking Panama’s economic reactivation. The plan is set ro be formalized at a plenary meeting today, June 29 and will be announced on Wednesday by President Laurentino Cortizo according to a La Prensa report

The agreement was reached on  Saturday, June 27, Working hours would be reduced, even if the national emergency declaration is lifted.

This implies a temporary reduction in wages, as has happened up to now, but would allow more jobs in the face of the limit505of their usual income.

This would be done respecting the Labor Code which establishes that in times of serious national economic crisis, fortuitous event, or force majeure, duly verified by the labor authorities, you can temporarily modify or reduce work hours with the consent of the union or workers.

The business sector has asked that the suspension of contracts be extended until December.