The Ministry of Labor is already calculating the jobs that will be created when the law enters into force. Law on Economic Efficiency and Employmentwhich is now being processed in the National Assembly, public-private alliances and the deduction of income tax for companies that employ young people are some of the bases being considered, indicates Minister Ivonne Núñez.

How many jobs are expected from the tax reform?

We have an assessment especially in strengthening public-private alliances. Here we project an investment of approximately USD 1,000 million in Ecuador that will enable investments for more employment, basically prioritizing the development of public infrastructure, such as hospitals, universities and improving road conditions. Here we focus on employment growth of 20,000 to 40,000 jobs.

From there, we have other bases that are very important, but which are perhaps the most talked about, and this refers to the deduction of income tax (PPD) for companies that employ young people. We are projecting where they can be employed, namely construction and agriculture, for that segment there will be a 75 percent deduction. Here we estimate an increase in the labor force of an estimated 5,000 to 10,000 young people.

When would these results start to be seen?

As soon as the law is adopted, regulations follow. We have an estimate that will not start with the issue of public-private alliance, but will start with tax deduction, we estimate in 90 days. We will do the first measurement in the first 90 days, there we will work hand in hand with the Tax Administration (SRI), we will do measurements every 30 days, we hope that in 60 days there will be a very significant sector of young people who are already in full employment.

The changes in the tax reform provide new parameters for the ‘advance payment’ of income tax and incentives for youth employment

According to analysts, the opening of new places does not depend only on tax incentives, except that previous governments implemented projects with incentives, but they did not have the expected response, what is the difference this time?

Because it is an obligation at the national level, it is a direct obligation with the production sector, with the business sector and everyone agrees, as well as in the discussion that took place within the legislature.

There were probably similar offers on other occasions, yes, but they never materialized, we have a problem as a national obligation and that is evident, we cannot be blind to reality, the sector must necessarily invest, i.e. why do we propose public-private alliances, so that the state is also part of this process, where investment in public-private alliances will obviously be foreign investment.

Unions believe that tax reform would target job insecurity, how will they guarantee that this does not happen?

President Daniel Noboa’s policy on labor issues is respect and respect for workers’ rights. When it comes to job insecurity, it has not been explained what the concept could be in the case of free zone operations, he tells you. in general; However, the ministry has started harmonizing with the regulation contained in the Labor Law, which consists of inspections, for this we put in place labor inspectors and restructuring. For example, in Manta we have only two labor inspectors, this is not possible, Manta is a city with a level of economic development, the highest in the province of Manabí.

That’s why we started this internal restructuring, that’s why the ministry guarantees integrity because it will be done directly and mutually, according to the employment contract that must be signed by those in employment, but it must also be legalized before the ministry, which is why this state portfolio will be placed on disposal of the type of employment contract that will be valid in the specific case of free zones, thus guaranteeing integrity.

There is talk of employing young people aged 18 to 29, what will happen to those aged 30 and over?

This age limit is given by the United Nations, which defines young people as between 18 and 30 years old.

The law focuses on that segment because it is the most neglected in incorporating the productive workforce, it allows young people to pay for their studies, it gives them security and prevents them from going to criminal groups, because they have always been very easy prey, they are caught at an early age , so we make the law for them, but that does not mean discrimination in any way.

The Labor Law itself does not discriminate against the possibility of inclusion in the production sector of persons older than 30, 40, 50 years, there is no discriminatory law that was conceived under the concept that there is discrimination.

They do not perceive tax incentives for the employment of young people as an incentive that really affects employment

The goal of the project is to create new jobs, but other aspects must be taken into account, such as the country situation, country risk, etc., how do they manage these aspects so that it does not work against them?

What you say is very important, but we have to understand why the risk of the country has increased, we have several parameters here, we met the leadership of the country with a fiscal fund against us, we knew what reality we were facing, but only as a possibility 200 million dollars, unfortunately, the worst is the economic reality that the country faced, however, despite this painful reality, the president managed to face this reality without taking international loans.

How do you view the mobilization that the workers announced for this December 19?

Mobilization is normal, the president and the ministry normally accept and respect the constitutional provisions, which is the right to express their contradictions and critical thoughts.

The workers expressed their dissatisfaction with the increase in the basic salary of 10 dollars in 2024, they said that they somehow aligned with the employers’ proposal, what do you think about that?

There we have a technical formula that does not depend on either the business sector or the labor sector. It is a technical formula and is determined by Article 118 of the Labor Law (when workers and employers do not reach an agreement), an article that knows the economy and labor.

The issue of (equating the basic with) the basic basket (what the workers asked for) is an argument that is always used, obviously the basic basket will have more value compared to the SBU… For us, Poverty reduction and proper distribution of wealth does not go through the basic basket, but through employment.

A $10 wage increase doesn’t make workers happy, but it makes companies happy that the decision is technical

What are the goals for 2024?

There is one goal that is important, the goal of regulatory compliance, once the labor law comes into force. And also the reduction of child labor that we have measured from the estimated 8% that currently exists, we have reduced it to 5%, and we are working hand in hand with the Inter-American Development Bank and the business sector that is taking responsibility. education of children we find on the streets.

How many children were found to be working?

This is a figure of more than 20,000 children in the entire country.