What did the Minister of Labor say about vacations and payment of CTS and bonuses in Peru?

The recently appointed Minister of Labor and Employment Promotion, Juan Sheput, stated that one of the main objectives of his administration will be to promote labor formalization in the country. The head of the sector said he will seek to expand workers’ access to formal jobs, with social benefits, protection coverage, and better working conditions, as part of his priority agenda. Sheput is no stranger to this ministerial portfolio, as he held the same position during Alejandro Toledo’s government in 2005 and resumed the role in the brief administration of Manuel Merino in 2020. Additionally, he was a member of Congress between 2016 and 2019 for the Peruanos por el Kambio bloc, later renamed Contigo, during which he chaired the Special Multiparty Bicentennial Commission.

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This is what Juan Sheput mentioned in one of the first interviews about what will be worked on in the new government

Juan Sheput stated that his administration will prioritize actions aimed at reducing labor informality in the country. To this end, he indicated that measures based on incentives, training programs, and joint work with the private sector will be promoted, with the purpose of generating more opportunities for formal employment for Peruvian workers. In this context, the head of the MTPE emphasized that the goal is for a greater number of citizens to access jobs that guarantee benefits such as Compensation for Time of Services (CTS), vacations, bonuses, health coverage, and a pension. Likewise, he ruled out any modification that implies the reduction of labor rights or the elimination of holidays, in line with what was previously expressed by the President of the Republic.

Labor formalization will be one of the central pillars of his administration according to the Minister of Labor

The Minister of Labor stated that promoting labor formalization will be one of the main priorities of his administration. As he explained during an interview, the goal is for a greater number of workers to access jobs with social benefits, labor protection, and better working conditions. To this end, he said that dialogue between the State, workers, and the business sector will be strengthened. The head of the MTPE specified that this strategy will also include actions to increase productivity and encourage private sector participation in generating formal employment. Likewise, he indicated that the Government’s labor policy will seek to facilitate the incorporation of workers and companies into the formal economy, aiming to maintain the competitiveness of companies and promote the creation of new jobs without affecting their sustainability.

He explained the benefits that reducing informality in private sector companies in our country will bring

On the other hand, Juan Sheput pointed out that reducing informality levels will be key to strengthening productivity and improving the country’s competitiveness. In this regard, he indicated that his portfolio will emphasize strengthening public employment services, implementing training programs, and working in coordination with the private sector to expand job opportunities. Likewise, the head of the MTPE stated that the Government seeks to consolidate an environment of greater stability and predictability for both workers and employers. He explained that labor policy will be aimed at maintaining a balance between protecting labor rights, the sustainability of companies, and the creation of new jobs. He added that the ministry will promote a modern and inclusive strategy that links economic growth with increased formal employment and a better quality of life for Peruvian families.

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What did the new president Keiko Fujimori say regarding workers’ labor rights?

President-elect Keiko Fujimori stated that her government will keep workers’ labor rights intact, in response to doubts arising after the Executive presented an initiative about possible changes in labor regulations. The future leader assured that no benefits will be cut and reiterated that this commitment was expressed during her message to the country. Her statements seek to clear up the uncertainty generated by the proposal presented to Congress.

The project contemplates evaluating mechanisms to flexibilize some labor benefits, such as vacations, overtime, bonuses, profits, and Compensation for Time of Services (CTS), always through agreements between employers and workers. Additionally, it proposes reviewing the holiday regime with the aim of improving productivity. At another time, Fujimori stated that each minister will have autonomy to form their work team and specified that any decision about the continuity of the National Police General Commander, Óscar Arriola, will correspond to the Minister of the Interior, César Astudillo.

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