Reform won’t generate that much employment

According to the General Secretary of the General Labor Confederation (CGT), Julio Roberto Gómez, the Government is wrong to say that reducing payroll taxes by 13,5 percent for companies that hire people with salaries equal to less than ten minimum wage salaries and substituting it with the new tax known as the Corporate Contribution for Equity (Cree) will generate anywhere between 400,000 and one million jobs, whether they are new jobs or informal ones that become formal.

If the goal was indeed to generate employment, Gómez pointed out, then it’s difficult to understand why unions weren’t consulted and workers given the chance to voice their opinion on the matter. The issue is being debated in Congress this week.

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