Eduardo García: “It is a management priority to be able to increase the pensions of the ONP”

In dialogue with La República, the head of the MTPE, edward garciaannounces that it will coordinate with the MEF to make effective the increase in ONP pensions. In addition, it indicates that the unemployment insurance project is advanced and needs to be socialized. He rules out removing the CTS, but there could be an adjustment to his calculation.

—Your management will continue to defend the labor outsourcing decree?

—A criticism that I have expressed before and it will not be the first time and I repeat it. The norm was approved without social dialogue, it is not an opinion, it is something that actually happened and we believe that this is precisely what creates a problem of legitimacy of the norms; in general, all over the Executive power, the current management of President Boluarte has indicated that dialogue is the way to find a solution to problems. These norms were issued without dialogue and that affects their legitimacy. It has also been pointed out that outsourcing did indeed generate problems that had to be resolved. This phenomenon certainly had to be addressed, but we believe, and this is the hallmark of this administration, that all underlying problems must be addressed through dialogue.

Are you considering repealing it?

I think that if we repealed it and if we did it without dialogue, it would be reiterating the error that we are criticizing. There is a situation that deserved to be corrected, this measure aims to correct this situation. This is currently being discussed in Congress and it is no coincidence that a consensus could not be reached; They have also realized that the problem of outsourcing deserved attention. We believe that the solution lies in dialogue. As long as that is not possible, the PETM will continue with the defense of Supreme Decree 001.

Will the institutionalization of the RMV be prioritized?

—We believe that the minimum living wage is an important matter to address in a tripartite manner, there have been significant advances and there are good expectations from this management to be able to reactivate the discussion, not of the increase at this time, but of the mechanics to technically determine the future.

– Would it materialize this year?

“We hope so.”

—About the increase in the RMV, isn’t it time yet?

—I couldn’t tell you if it’s time or not, the first thing we have to do is evaluate the social economic scenario and see if it is relevant, that analysis has not been done yet.

—Is that evaluation on the agenda?

—We have not analyzed it and therefore I could not answer yes or no at this time.

—One of the axes of your agenda is social security…

—Within social security, we believe that the main thing and that the objective would be to propose or at least start a discussion for a comprehensive reform of the pension system, we believe that this would be the most lasting solution to the problem of pensions in Peru. As long as that is not possible, there are issues to address on how to serve certain pockets; the self-employed, for example, who currently do not have any protection or have incipient protections such as groups of motorcycle taxi drivers, land stevedores, who deserve the attention of the State.

—And improve the pensions of the ONP?

—Another important group is certainly the more than half a million pensioners from 19990 who have a very low pension. S/500 does not allow you to have a dignified life if you do not have a family support network that can help you pay. your livelihood. This is being discussed very early with the Minister of Economy, it has not yet been discussed institutionally with the cabinet.

“Do you already have a proposal?”

—There is already a proposal, it is not one that we are formally launching, it is a proposal to start making a calculation and determine some amount that could be important.

—Would the increase occur in the short or medium term?

—I think that in the medium term it could be viable, but we still have to have discussions with the Minister of Economy, I could not give you a certain date at this time.

—But the increase is a priority…

Yes, it is a management priority. be able to increase the pensions of the ONP.

—On unemployment insurance, how much progress has been made? The ILO was advising them…

—Indeed, the ILO has supported the Ministry of Labour. It is very important that Peru has unemployment insurance. Already with the ILO Progress was made and actuarial studies have even been carried out to demonstrate the financial viability of this insurance that would be accompanied by active employment policies, inclusion in a job market, accompaniment, training. It is a very interesting proposal that is being worked on and what it would be necessary is to be able to reactivate the dialogue with the social actors to be able to finalize how this protection system could be made viable.

—Would this preliminary proposal imply eliminating the CTS?

—We do not believe that this means eliminating the CTS, although the CTS was born as a protection mechanism for unemployment, in reality it has been shown that it is very recurrent that the CTS is perforated, there are many regulations that, every time there is a situation of economic stress, authorizations are issued to have of the CTS funds (…), then somehow it has lost that nature of protection for unemployment and it almost becomes an additional remuneration. This scheme no longer fulfills the purpose for which it was intended, so I don’t think unemployment insurance can justify the elimination of the CTS, but maybe some adjustment.

—The CTS could be reduced…

—The amount resulting from this actuarial study is approximately between 1.7% and 2.2% of remuneration, which is what the actuarial study has shown. The CTS is 8.33%, so there could be an evaluation of how to distribute the assumption of that cost that assuming the unemployment insurance would entail.

—Is unemployment insurance a priority?

—For the management it is a very important issue, but everything depends on achieving a dialogue with the social actors.