Professional Documents
Culture Documents
CONTENT
1. SUMMARY OF ATYPICAL WORK IN COLOMBIA
2. OVERVIEW OF IMPLEMENTATION OF TRADE UNION CONTRACTS
3. EXISTING LEGAL FRAMEWORK CONCERNING ATYPICAL WORK AND CHARACTERISTICS OF
TRADE UNION CONTRACTS
4. THE CGT STRATEGY, RESULTS AND PROGRESS
5. KEY ISSUES FOR FURTHER DISCUSSION
6. CONCLUSIONS AND RECOMMENDATIONS
ACRONYMS
ANDI
CGT:
CST:
TUC:
WC:
SSC:
CUT:
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ATYPICAL WORK IN COLOMBIA. TRADE UNION CHALLENGES AND STRATEGIES TO IMPROVE LABOUR RIGHTS
CONTEXT
The pressures of globalisation have forced private companies to produce in more austere
conditions, affecting working conditions, in order to remain competitive. At the same time, trade
union power is declining, due to an increasingly flexible workforce, caused by atypical work.
Both internationally and in Colombia, this phenomenon generates a growing informalisation of
the formal labour sector. The upshot is that more than 60 percent of ( 64% female, 60% male1)
workers in Colombia have an informal2 or atypical job, without proper working conditions and
comprehensive social security, and unable to join trade unions. Consequentially, workers with
formal employment are now part of the minority. At the same time, there is fragmentation
of trade unions in Colombia due to the fact that the Worker Cooperatives (WC3) are being
transformed into Simplified Stock Companies (SSC4)
to evade labour responsibility and mutate into fake
unions or unions in disguise, with unacceptable
working conditions, even under the impassive gaze
of the government. Thus, the rate of association
increases artificially. The SSCs use this legal
character to continue using contracts to provide
services, with no approach to defence of labour
rights, a process that also weakens the existing trade
unions and the credibility of the trade union contract
(TUC).
Regardless of the level of education of women, informality rates in Colombia remain higher for them. Women with lower
levels of education are most affected by the problem of informality. There is also a close relationship between the workers
level of education and informality rate. Source: Alvarez Vos, 2012.
2
Work informality according to the ILO: those whose labour relation is not subject to labour legislation or tax regulations,
and have no access to social protection or labour benefits. Source: DANE June 2015.
3
Non-profit organisations, based on solidarity. They group individuals who manage, produce common goods, perform works
or provide services. No WC can act as a company for employment intermediation or as a temporary service company, or use
the work of its members to supply labour to third parties (Decree 4588 of 2006 & Law 1233 of 2008).
4
It is a capital company of commercial nature, regardless of the activities established in its purpose. Its goal is the reduction
of costs and bureaucracy in corporate organisation, and has enough freedom to regulate inter-company relations.
1
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ATYPICAL WORK IN COLOMBIA. TRADE UNION CHALLENGES AND STRATEGIES TO IMPROVE LABOUR RIGHTS
Minimum wage, contributions to social security, payroll taxes and other costs borne by the employer.
Snchez Torres/ Alvarez Vos, 2011
7
Percentage of contributors from the total of workers. Source: IDB, 2013.
8
In Colombia, the situation of workers is quite complicated, due to the violations of human rights. The exercise of trade
union freedoms is precarious: many trade union members have been murdered and are constantly threatened and victims of
violence.
5
6
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ATYPICAL WORK IN COLOMBIA. TRADE UNION CHALLENGES AND STRATEGIES TO IMPROVE LABOUR RIGHTS
There are different trade union confederations with different strategies. The CUT9 promotes
the proposal of direct contracting, although in the past it signed many trade union contracts.
The Ministry of Labour indicates that the collective agreement is in full force, and is used by
unorganised workers to reach agreements with their employers individually. At the same time,
it recognises that these agreements can impact negatively on unionisation. The business sector
(through the ANDI10) recognises collective agreements as a valid instrument established by
law and believes TUCs are positive, if they fulfil their purpose under the parameters of the CST,
but it notes that these contracts often miss their purpose and condemns their misuse. At the
same time, it recognises that TUCs are one of the applicable legal forms and claims it does not
promote any particular type of contract.
The CGT recognises that collective pacts are part of the law, but claims that wherever trade
unions operate, collective bargaining and agreements are the proper way to negotiate, because
most companies use these pacts to discourage workers from joining trade unions; and the
CGT is a great promoter of TUCs. There are other trade unions seeking to recruit outsourced
workers through struggle, mobilisation and victory a strategy not shared by the CGT, which
seeks the path of dialogue, consultation and negotiation.
The CGTs vision regarding labour contracts is the formalisation of the labour market, through
individual labour contracts with due rights and proper working conditions to ensure decent
work. Its strategy is to implement TUCs from affiliated trade unions, increasing the number
of workers, companies and state institutions under this legal concept in order to escalate this
type of contract and formalise the labour market. Therefore, the CGT considers TUCs as a
means to achieve a higher goal. As TUCs are part of the main strategy of the CGT concerning the
formalisation of labour, this type of contract is the focus of this paper.
Without the support of many people with direct experience with TUCs, I would not have been
able to prepare this document. I would like to express my appreciation to informal workers and
trade union members with collective agreements for their frankness and openness; trade union
leaders for their dedication and extensive explanations; and employers, government entities
and experts in the subject. Special thanks to Ana Catalina Herrera, for her coordination and
inputs; Julio Roberto Gmez and Miryam Luz Triana for their observations that improved the
document, and Ricardo Barona Betancourt for reviewing the legal part.
9
10
United Confederation of Workers of Colombia, the confederation with the largest membership in Colombia.
The National Business Association of Colombia.
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ATYPICAL WORK IN COLOMBIA. TRADE UNION CHALLENGES AND STRATEGIES TO IMPROVE LABOUR RIGHTS
Temporary employment agencies are a major generator of outsourcing, because workers are not seen as company
employees, and cannot form a trade union. There are approximately 4 million workers in this situation.
11
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ATYPICAL WORK IN COLOMBIA. TRADE UNION CHALLENGES AND STRATEGIES TO IMPROVE LABOUR RIGHTS
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ATYPICAL WORK IN COLOMBIA. TRADE UNION CHALLENGES AND STRATEGIES TO IMPROVE LABOUR RIGHTS
The TUC must be signed by the legal representative who shall represent the trade union
members. The trade union is required to establish in its general accounts a subaccount for each
TUC signed. The obligations of the trade union include affiliation, payment and withdrawal from
the social security system of their members. These expenses must be agreed and covered by
the company with which the TUC is signed. The trade union shall compensate (if appropriate)
the members for their contribution in the implementation of the TUC, with the benefits defined
in the assembly of members, the regulations, and the TUC.
In Colombia, court rulings on TUCs have been few and only in recent years; therefore, their
regulatory development is recent. After the approval of the CST, it was established that, if the
employer needs to hire services or work, the first possible choice is a TUC16. Prior to signing the
contract, there must be a meeting with affiliates to discuss the proposal and the conditions of
implementation. It is also established that permanent work must done through direct contracts.
So far there is much to be done regarding implementation, especially due to noncompliance by
the state itself at all levels.
Trade unions should develop regulations for each TUC, which must contain at least:
Regarding the employment relationship between workers and trade unions, there were
several changes over the years: A ruling17 determined TUCs as civil contracts. A later ruling18
established that trade union members do not have an employment contract with the trade
union, and as such, there is no employer-employee relationship, because there is no element
of subordination, a typical element of the employment contract; and if seen from the opposite
perspective, it would seriously undermine the right to organise in Colombia. These two positions
also take place in practice, because one of the main problems is that when a TUC is drafted,
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ATYPICAL WORK IN COLOMBIA. TRADE UNION CHALLENGES AND STRATEGIES TO IMPROVE LABOUR RIGHTS
no (much) attention is paid to the fact that the trade union and its leaders are different from its
members. It is important to understand that the affiliate is different from the leader of the trade
union, or the trade union itself. It is essential to understand that when contracts are signed with
the union, there is an automatic relation with the workers, and this prevents intermediation.
Very often, when a TUC is signed, there is the notion that I am different from the trade union
and a lack of sense of I am the union and whatever is done with the trade union, is done with me,
because I am the essence, the life of the trade union. In other words, if the members see the
trade union as their board of directors, this generates intermediation. For TUCs to work, and
to avoid misuse of this legal concept, it is necessary to raise awareness about this notion and
about collective thinking.
Assuming that there is no employment relationship, it is understood that the TUC is aimed at
representing the workers. Another judgment also establishes that the trade union seeks with
the TUC to allocate resources for education, training and housing for participating members,
which are not benefits derived from an employment contract but from financial solidarity,
aimed at improving the situation of affiliates. Despite the rules, we observe that there are many
different interpretations regarding who the employer is.
Another ruling19 established the main differences between an individual employment contract
and a TUC, indicating that the conditions of the TUC do not have subordination elements. This
decision explains how to understand the meaning of a TUC:
Collective trade union contract
Always in writing
Can be verbal
Not formal
19
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AN EXAMPLE OF RIGHTS,
GUARANTEES AND OPPORTUNITIES
TO MEET THE DEMANDS AND
NEEDS OF ATYPICAL WORKERS
Through the TUCs, demands have been
met, thus improving conditions for
workers. An example of this statement
is the TUC signed between Ingenio
Mayagues (sugar mill contract) and
the trade union Sintraindulce: In 1990,
with economic liberalisation and the
labour flexibility model, there was an
unfavourable impact on workers in the
sugar industry, reducing by 41% the
number of workers, and the number of
trade union members by 50%.The TUC
was implemented and a transition took
place to recover what was lost with
labour flexibility. Social security was
again guaranteed, as well as the right
to workers transport, opening the way
again to guaranteeing a decent job.
Through social dialogue, some issues in
collective agreement were flexibilised,
mainly those related to salary issues.
It also introduced the promotion of
workers through training, thanks to
which 500 cane cutters are now in better
positions. Currently 41% of workers at
Mayagues are under the TUC model with
SINTRAINDULCE.
Regarding TUCs for the public sector, Law 617 does not allow the entry of workers into the
public sector payroll, and specifies that TUC affiliates can only be paid by investment category
(a cost-reducing category, which may affect workers rights that are categorised as such)
rather than as operating expenses. At the same time, two judgments20 require state agencies
to formalise the temporary jobs in government agencies. Until now, they are not enforced,
hindered by law 617, despite the primacy of the judgments over the law. In addition, ruling 1429
establishes that state agencies should analyse the use of TUCs before other mechanisms.
HOW THE CGT USES THE LEGAL FRAMEWORK FOR ITS TRADE UNION
CONTRACT STRATEGY
The CGT uses TUCs as a legal alternative to curb corporate greed and labour mediation,
allowing the trade union to participate directly in the management of the company and
collective work, improving democratisation and promotion of freedom of association. It is based
on regulatory tools, not forgetting that there are still regulatory gaps and issues to better
specify the rights21 of participating members.
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ATYPICAL WORK IN COLOMBIA. TRADE UNION CHALLENGES AND STRATEGIES TO IMPROVE LABOUR RIGHTS
The 2014 law wanted workers to be independent, so they could contribute to social security. Trade
unions struggled so they would be recognised as participating affiliates.
Trade unions played a major role in maintaining the concept of TUC. There were several attacks on
the model, dubbing it fragmentary. The most radical sector even wanted to eliminate the CST.
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ATYPICAL WORK IN COLOMBIA. TRADE UNION CHALLENGES AND STRATEGIES TO IMPROVE LABOUR RIGHTS
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ATYPICAL WORK IN COLOMBIA. TRADE UNION CHALLENGES AND STRATEGIES TO IMPROVE LABOUR RIGHTS
Trying to dismantle the previous model, the CGT seeks to establish the following model:
With this form of collective labour contracts, workers have no individual employment
contracts, nor can they negotiate independently. Trade union members negotiate collectively
compensation, labour rights and guarantees. The company pays the trade union all costs and
has no direct relationship with the workers. The trade union handles payments and benefits
internally and organises all aspects of the work, charging between 6-10% for administration
fees22. If the union were to mishandle these funds, it would have to bear the costs/fines and
should be able to pay from its savings. The most important aspect is the dismantling of labour
intermediation and that the profits are used for collective social purposes.
The CGT defines its TUC strategy based on the characteristics of trade union contracts of
each affiliated trade union, which have their own peculiarities and experiences. The CGT does
not use a sectoral approach so far, because sectoral agreements cannot be negotiated. The
CGT focuses mainly on achieving consistency within the confederation and the affiliated trade
unions, consistency of vision and mission, positions taken in negotiations, the language used
and the proactivity and attitudes of their leaders at all levels and negotiations.
The CGT strategy goes far beyond trade union contracts. These are some of the components:
Campaigning for decent work policies at national and department level.
A Standing Negotiation Committee, where CGT is urging the government to create a real
decent work policy and social dialogue, assisting in work formalisation processes.
Emphasising the development of specific programmes to combat outsourcing
Influencing public policy directly at departmental level, for the implementation of trade
union contracts.
Organising different national and regional campaigns, for example, on Decent Work Day,
seeking to guarantee first job for young people and to eradicate child labour.Maintaining
direct and constant dialogue with the business sector.
Taking a critical position on Ministry of Labour inspectors, which so far are provisional,
without permanent contracts.
Training to help understand TUCs.
External communication and dissemination of TUCs to different stakeholders.
Below is their strategy at national level and then at local level.
22
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ATYPICAL WORK IN COLOMBIA. TRADE UNION CHALLENGES AND STRATEGIES TO IMPROVE LABOUR RIGHTS
NATIONAL STRATEGY
CGT emphasises (at all levels and especially to the central government) the urgency of reducing
work informality and labour outsourcing, stressing that it is a critical situation, requiring
specific policies by the government in the context of social and labour consultation. For
example, many WCs became SSCs to evade labour rights and responsibilities and many of these
mutated into false trade unions that promoted the policy of signing false trade union contracts,
in unacceptable conditions. The CGT has been insisting for the past three years on the ban and
eradication of these false trade unions. It also urges the Ministry of Labour for labour inspection
to establish a special control over these false trade unions, which apart from generating
outsourcing, give a negative image to the trade union movement. The previous government
banned these cooperatives, in order to promote labour formalisation systems in dignity, but
this did not have the expected results. The CGT presented a proposal to the government with
28 items on job creation. These proposals range from primary income sources, to major
projects, protection of national production and the internal market, replacing food production23.
A key issue is resorting to negotiation of foreign debt, an essential issue with current validity.
Colombia is currently damaging its own development by paying this debt. The CGTs strongest
point is the organisation of workers by branch of industry. Trade unions by company were
always favoured in Colombia, but now they are being promoted by industry sectors. While trade
unionism by industry is promoted, its development in Colombia is very limited.
LOCAL STRATEGY
AUTONOMY
Regarding CGT the strategy, the role of each member trade union is to have relative autonomy.
A trade union cannot do whatever they want in the development of policies; there are national
policies and there are minimum standards that must be followed. Additionally, members have
freedom to devise their own mechanisms for implementing TUCs and therefore there is a
variety of applications24. They all agree, however, that trade union contracts should not be used
in every case. (Note that CGT affiliates with TUCs are an absolute minority). When affiliated
trade unions approach companies, the reputation of the Confederation helps a lot, as the latter
is considered a serious, responsible and professional organisation. Their statements at the
national level, and their good relations with all stakeholders are an important factor to generate
the necessary trust.
AFFILIATION
In some sectors, workers apply for membership on their own initiative. Then, the trade union
assesses the candidates, affiliates them and contacts them when there are jobs available.
In other sectors, people in the informal sector are proactively sought after. When the trade
union is already within the company, they assess the working conditions of the staff, which
agreements are in place, and seek to improve them. For workers who frequently change
employers and/or are working in the informal sector, the CGT strategy focuses on industry
sectors; however, it is very difficult when they have no organisation. The trade union can
organise them through direct affiliation, which is a highly intensive work and there is no
functional strategy in place for this purpose.
Colombia produces 320 million tons of food every year; however, it imports 13 million tons, which has a major impact on
employment.
24
Some trade unions use a philosophy combining trade union and corporate components; others focus more on the
grassroots.
23
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ATYPICAL WORK IN COLOMBIA. TRADE UNION CHALLENGES AND STRATEGIES TO IMPROVE LABOUR RIGHTS
25
For example San Carlos sugar mill, and Cabaa sugar mill.
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ATYPICAL WORK IN COLOMBIA. TRADE UNION CHALLENGES AND STRATEGIES TO IMPROVE LABOUR RIGHTS
SINTRAUNIOBRAS BOGOT.
TRADE UNION CONTRACT WITH A STATE ENTITY
Sintrauniobras signed a TUC with a state entity (Road Maintenance Unit).
Two workers at Sintrauniobras (both auxiliary traffic officers for road maintenance work) claim that their labour rights have greatly improved, although
the basic wage is a little lower than working with contractors. There is more
job stability, solidarity, human quality they feel at home and extra-legal
benefits. Among other benefits, they get paid leaves, food subsidy, compensation fund, medication not covered by insurance, training, flexible working hours adapted to the needs of workers, so they can study. The workers
said that there are no other labour issues that need to be improved.
Sintrauniobras, however, has an imperfect and fragile relationship with the
UMV, and there are different perceptions; for example, the entity requests to
have a deadline for delivery of works, a system of fines and punishments, a
extra-contractual insurance policy paid by the trade union, covering against
incidents, and greater control by trade union administration; issues that the
trade union cannot agree on. The company did not agree to medium-term
contracts and the contract has now been extended nine times. It shows that
there are advantages, yet difficult situations, and a lasting relationship based
on the TUC.
The UMV sees the TUC as one of the options to cover labour needs, but
explains that state entities cannot stick to just one form of contracting. They
believe that the trade union has to be as competitive as other contractors.
They claim that there is conflict between the obligations of state contracts
and the right to free association; the latter prevents the external control
required by the entity. They argue that the union does not necessarily have
the financial arm, the technical and administrative capacity to manage it
well. There are also different perceptions about who the employer is, as both
stakeholders are reluctant to assume this role. The workers claim that they
do not have an employer, but colleagues, based on mutual support.
Greater productivity, sense of belonging, quality of labour, compliance, fewer accidents and a proactive working
environment
27
Trade union of public works of the District of Bogota.
26
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ATYPICAL WORK IN COLOMBIA. TRADE UNION CHALLENGES AND STRATEGIES TO IMPROVE LABOUR RIGHTS
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ATYPICAL WORK IN COLOMBIA. TRADE UNION CHALLENGES AND STRATEGIES TO IMPROVE LABOUR RIGHTS
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National Learning Service, attached to the Ministry of Labour, offers free training.
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ATYPICAL WORK IN COLOMBIA. TRADE UNION CHALLENGES AND STRATEGIES TO IMPROVE LABOUR RIGHTS
International
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ATYPICAL WORK IN COLOMBIA. TRADE UNION CHALLENGES AND STRATEGIES TO IMPROVE LABOUR RIGHTS
DISSEMINATION
Since the concept of TUC is not well known, it is essential to disseminate information about
it, among both atypical workers, and trade unionists, employers, judges, politicians, and
inspectors. A key to achieve this is the systematisation and dissemination of success stories and
challenges, showing achievements and impact, for both workers and contracting companies.
This is essential in order to scale the application of TUCs. Furthermore, it is vital to promote
strategies like speak with your fellow businessmen, peer to peer and to give a greater role to
members, (members as spokespersons) and to take stronger positions in the public debate,
without taking risks, using the success of TUC. This dissemination effort requires not only
united efforts, but also to destigmatise the negative image of trade unions. One way to achieve
this is to work with great transparency, avoiding errors that discredit the image of TUCs.
Another important element is that the CGT philosophy, of agreement through negotiation and
dialogue, creates opportunities, especially in a historically violent context, in the trade union
world and in general, where workers are tired of hostilities and abuse.
VISIONS
Within the CGT, there are different opinions on the purpose of the TUC. For most, it is the
means, a transition to combat flexibilisation of labour, to create afterwards a favourable
working environment for individual employment contracts. For others it is an end in itself; they
believe that the benefits of collective bargaining are important, such as improving labour rights
and working conditions. The shared vision among all of them is that this process takes several
years, of learning by doing, and that way forward is through consultation and dialogue. There is
also a variety of opinions among external stakeholders. However, one opinion prevails, namely
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ATYPICAL WORK IN COLOMBIA. TRADE UNION CHALLENGES AND STRATEGIES TO IMPROVE LABOUR RIGHTS
of those who have actually worked with TUCs; they all recognise that there are challenges, but
support the idea.
It is very important to pay attention to the different perceptions regarding the concept of trade
union leaders and affiliates. When we achieve a shared perception among leaders and
members that we are the trade union, because we are an integral part, the life of the trade
union there will be a viable and sustainable basis for the TUC. In practice, there is the notion
among affiliates that I am different from the trade union and members see their trade union
as their board of directors. Each notion results in a different employment relationship, and
defines the form of solidarity, collective work and the extent to which the collective interest is
represented.
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ATYPICAL WORK IN COLOMBIA. TRADE UNION CHALLENGES AND STRATEGIES TO IMPROVE LABOUR RIGHTS
INTERVIEWEES
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ATYPICAL WORK IN COLOMBIA. TRADE UNION CHALLENGES AND STRATEGIES TO IMPROVE LABOUR RIGHTS
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