The group reaffirmed its position of rejection of a reform that it describes as regressive.
SANTO DOMINGO.- Yesterday, Thursday, the Dominican Republic Employers' Confederation (Copardom) expressed its concern regarding the recent approval of the bill that modifies the Labor Code, warning that the reform represents serious setbacks for legal stability, the investment climate, and the country's competitiveness.
For his part, the president of the Senate Special Commission that studied the draft amendment to the Code, Rafael Barón Duluc, assured that the legislative piece does not represent a setback, but a modernization of the Dominican labor system
"According to the points identified by the Copardom, the approved project ignores fundamental agreements reached in the Labor Advisory Council, a tripartite space where key issues for the modernization of labor relations were agreed upon for years," said the president of the business entity, Laura Peña Izquierdo.
One of the most alarming aspects they highlighted was the elimination of pre-trial conciliation, a mechanism that allowed for the swift and less costly resolution of disputes for both parties. With this elimination, employers fear an unnecessary increase in litigation and an overburdened court system.
Another controversial change highlighted by Peña Izquierdo was the modification of the prohibitions for workers, since restrictions on collections in workplaces and religious propaganda are eliminated, maintaining only the limitation on political propaganda, generating gaps that could cloud the work environment.
In a press release, the president of Copardom warned that the new wording requires the payment of labor benefits for retirement or withdrawal even if the pension comes from individual capitalization accounts of the Dominican Social Security System (SDSS), which increases labor costs and distorts the principle of proportionality.
In the financial sector, they discuss the risk of a more cumbersome enforcement process, as judicial deposits now require validation through hearings, whereas previously an administrative deposit sufficed. This procedural obstacle exposes companies to precautionary seizures and increases the workload for judges.
"Of particular concern is the provision that affects the competitiveness of free trade zones, forcing them to pay a share in the company's profits, which contradicts the incentives that for decades have made this sector a key driver of exports and employment," he stated.
Copardom warned in the press release that this opens the door for the Executive Branch to declare non-working days without clarity on their remuneration, increasing uncertainty about the planning of operations and costs.
"The employers' association believes that provisions such as undue compensation to financial institutions during executive seizures threaten credit stability, since they impose additional payments for each day of delay in the delivery of guarantees," he emphasized.
The group reaffirmed its position of rejection of a reform that it describes as regressive, since it breaks the delicate balance between the rights and obligations of workers and employers, and ignores fundamental principles of business freedom, said Peña Izquierdo.
The business organization made an urgent appeal to the Executive Branch and the National Congress to reopen a genuine tripartite dialogue, resuming the consensus built over years of technical work and negotiation.
Copardom reiterated its commitment to a modern, inclusive, and balanced labor reformthat fosters competitiveness and the creation of quality jobs in the Dominican Republic.
The statement is signed by 85 business associations, including the National Council of Private Enterprise (Conep), the Association of Industries of the Dominican Republic (AIRD), the Dominican Association of Free Zones (Adozona), the Association of Hotels and Tourism of the Dominican Republic (Asonahores), the Employers' Confederation of the Dominican Republic (Copardom), the Dominican Confederation of Micro, Small and Medium Enterprises (Codopyme), the National Organization of Commercial Enterprises (ONEC) and the Association of Multiple Banks of the Dominican Republic (ABA).
He describes the position as alarmist
The president of the Senate Special Commission that studied the draft amendment to the Labor Code, Rafael Barón Duluc, described as "alarmist and unfair" the position of the National Council of Private Enterprise (CONEP), which has labeled the ongoing labor reform as regressive.
The legislator asked that entity to retract its statement and assured that the legislative piece does not represent a setback, but a modernization of the Dominican labor regime
“To say that this project threatens job security or that it is regressive is completely false,” stated Barón Duluc, when approached by the press at the National Congress.
As he explained, the Commission did not accept proposals such as the establishment of a cap on severance pay —one of the points that generated the most resistance from the unions—, which, in his opinion, dismantles the business narrative that the reform reduces rights.
