New employment contracts for Ecuadorian banana sector

The banana sector in Ecuador is going to work with other employment contracts. The working day will be shorter and more in line with good practice. The Minister of Labor, Raúl Ledesma, said that the change will commence from the 1st of May 2018. A new model for employment contracts also applies to a number of other sectors, such as floriculture and tourism.

The new models will only apply to new contracts or to regulate informal activities. According to the minister, the measure aims to pay the employee for actual work. It would also make it easier for employees to work for other employers.

For the banana sector, a six-day working week of 36 hours is being introduced, provided that no more than eight hours per day is worked. Director Richard Salazar of the Association of Marketing and Export of Bananas (Acorbanec) calls the new contract model ‘realistic’. According to him, forces are sometimes hired that only work four days a week but have to be paid in full.

Apart from the new employment contracts, exporters, producers and the government in Ecuador are in discussions to reduce costs and increase productivity. This week there was protest by the agricultural sector against agricultural policy. Salazar (Arbonec), however, expects improvement through more legal adjustments for its sector.

Author: Paul Smits