San Juan, Puerto Rico: Puerto Rico’s House of Representatives approved yesterday a controversial labour reform called for by a federal control board overseeing island’s finances as part of efforts to improve economic conditions on the US territory.
The bill, which now heads to Senate, cuts size of a mandatory Christmas bonus and required number of vacation and sick days granted workers. It also allows flexible scheduling, lengthens a probationary work period to a year from three months and reduces overtime pay from double time to time and a half.
Labor unions have criticised the measure for eliminating workers’ rights, but proponents counter the benefits are obstacles to job creation and have contributed to the loss of 300,000 island jobs over the last decade.
Last month, the oversight board told commonwealth officials the labor reform needed to be implemented immediately given Puerto Rico’s 13 percent unemployment rate, versus a U.S. average of 4.5 percent. The board said regulations related to severance pay, flexible scheduling, employee retention and mandatory vacation days and pensions should be brought in line with U.S. standards.
