The Foundation for Economic Freedom (FEF) yesterday called for reforms in labor laws to address the massive unemployment problem caused by the pandemic.
FEF in a statement called for the convening on the occasion of Labor Day of a tripartite conference where government, the private business sector and labor groups will forge a social contract that will benefit labor and capital alike in finding a whole-of-nation approach in tackling unemployment.
FEF said the usual increase in minimum wages and benefits every Labor Day is no longer viable during the present period of widespread joblessness and uncertainty if businesses will survive.
“Reframing labor laws and regulations by all sectors concerned may be necessary to create an environment conducive to job generation while simultaneously protecting the rights of workers to decent livelihood. The framework of labor laws needs to be revisited and reframed to modern markets as these outdated systems may act as a barrier to growth of labor-intensive industries and reduction in high unemployment,” FEF said in a statement.
It added a whole of society approach to solving labor market imperfections is necessary not only because of the disruption to unemployment that the pandemic has caused, but also because the Fourth Industrial Revolution (FIRe) is threatening the jobs of even those who have retained them during the pandemic.
“The present crisis should be an opportunity to rethink policies from security of tenure to unemployment insurance and worker retraining,” FEF said.
