Julio Velarde on outsourcing: “I think it contradicts the specialization (of companies)”

The refusal to outsource the labor force was not only rejected by the business community, the initiative did not receive the support of the president Central Reserve Bank, Julio Velardewho emphasized the importance of companies specializing in providing their services.

Business associations defended outsourcing because they cannot take on certain tasks and turn to outsiders for specific jobs. However, from Monday, August 22, those who resort to this practice can be fined 241,638 soles.

“People tend to specialize just like companies do, so I really think goes against this specialization in improving performance and mainly because it is very difficult to determine what is the core,” said Julio Velarde.

In addition, the official agreed with some trade unions that warn of a possible increase belonging informality with no outsourcing. “In other countries, such regulation leads to a reduction in formal employment,” he stressed.

“I suppose that goes against this specialization in improving performance and mainly because it is very difficult to determine what is the kernel”

However, despite the criticism, the government supported this decision due to labor abuses committed by some outsourcing companies that do not recognize the labor rights of their workforce. On this occasion, Velarde explained that “there is a lot of abuse, but it decreases with supervision.”

CNTPE members demand dialogue with the executive branch

A few days ago, the business associations that make up the National Council for the Promotion of Labor and Employment (CNTPE) threatened to suspend their participation in the aforementioned working group, and this decision is motivated by the labor policy issued by the government and qualified by the business community as “one-sided and arbitrary.”

In their statement, they rejected the words of Labor Minister Alejandro Salas that any labor law is the sole responsibility of the government.

“Peru is a signatory to ILO Tripartite Consultation Convention No. 144, which states that “workers’ and employers’ organizations must be effectively consulted in the process of adopting legislation or regulations that may affect the interests of their members,” the union said.

Minimum living wage

This is not the only challenge to the government, in recent days Labor Minister Alejandro Salas has been considering bringing up the issue of increasing living wagewhat was said was backed up even by the report.

On this, Julio Velarde based some of his studies on the impact of minimum wage increases on formal employment in other countries. “There are various articles that indicate that this negatively affects employment. This does not mean that it is decreasing. Only that if it was supposed to grow by 3%, then in the end it will grow by 2%, ”he said.