Private Sector Coalition: Fiscal recovery plan falls short

Private Sector Coalition leaders said Thursday the plan presented by the government last week fell short of including necessary labor market and permit reforms needed to spur the island’s long-term growth.

While saying the plan is a “good working document,” Coalition members said specific steps are needed in those two areas to attract more investments and boost the island’s dismal workforce participation rate, currently estimated at about 40 percent.

Puerto Rico Manufacturers Association President Carlos Rivera-Vélez speaks during the Private Sector Coalition’s gathering with the press Thursday.

Among other things, the group believes changes are warranted for issues such as: extending the probation period from three months to a year — giving employers more time to evaluate new employees; Law 80, to eliminate the presumption of unfair dismissals; and flexi-time.

“We expected the plan to have specific recommendations for growth and economic development,” said José Vázquez-Barquet, president of the Chamber of Commerce. “That is why we’ll continue to meet to draft our own economic development recommendations, something that has been unattended for many years.”

Meanwhile, Puerto Rico Manufacturers Association President Carlos Rivera-Vélez said getting anything done in coming weeks will depend on bringing a cross-section of sectors together: public and private, organized labor and citizen-based groups, “all united with a common goal, the socioeconomic development of Puerto Rico and the creation of jobs. Our future depends on it.”

In coming weeks, the Coalition will also meet with lawmakers to submit at least five draft bills proposing amendments to current labor and permit laws, Rivera-Vélez said.

Puerto Rico is “going through what is probably its worst economic and social times, which should make it everyone’s responsibility to understand the situation as objectively as possible, and the proposals presented to us,” said Ramón Pérez-Blanco, president of the Puerto Rico Products Association.

“On the issue of the labor market reform, the main objective of the private sector’s recommendations is the flexibility to operate businesses and to facilitate job creation,” he said.

“The amendments to labor laws that we propose bring us closer to the conditions in the labor market in the U.S. mainland and other jurisdictions with which we compete that allow the employer to negotiate the benefits, wages and terms directly with employees to the benefit of both parties,” said Vázquez-Barquet.

The Private Sector Coalition groups about 20 of the island’s professional organizations.



Written by Contributor

Private Sector Coalition: Fiscal recovery plan falls short