Paraguay: Violation of the national constitution and international conventions

Paraguay’s law on micro, small and medium-sized enterprises violates the national constitution and international conventions. The ITUC’s Paraguayan affiliates say the law marks a major step back in social legislation.

“Under this law it will be permissible to pay wages that are below the legal minimum and fire workers without compensation. It will put an end to labour stability for 80% of Paraguay’s workers who work in companies with fewer than 30 employees.”

“This new law ‘promoting micro, small and medium-sized enterprises’, approved without a national debate and with a total absence of transparency, constitutes a serious attack on labour legislation and encourages unbridled outsourcing by making it possible for large companies to divide up into micro, small and medium-sized enterprises that do not have to comply with the Labour Code”, stresses Sharan Burrow, General Secretary of the ITUC. “The government of Paraguay must ensure compliance with the constitution and the Fundamental Conventions it has ratified.”

In a letter sent to the Paraguayan authorities, the ITUC condemns the new law and urges President Fernando Lugo to take the necessary steps in congress to put a stop to job insecurity for workers.