Peru’s congress repeals youth labor law that would cut benefits

Global Business

After a wave of protests, Peru’s congress repealed a new youth labor law on Monday that cut benefits for young workers, as part of reforms meant to revive the flagging economy. CCTV’s Dan Collyns reported this story from Lima, Peru.

Peru’s congress repeals youth labor law that would cut benefits

After a wave of protests, Peru's congress repealed a new youth labor law on Monday that cut benefits for young workers, as part of reforms meant to revive the flagging economy. CCTV's Dan Collyns reported this story from Lima, Peru.

After five nationwide protests in a little more than a month, Peru’s government got the message.

More than three quarters of Peru’s congress voted to overturn the unpopular law that the government said would tackle youth unemployment, but thousands of young people rejected saying it was an attack on their basic labor rights.

The reform would have allowed employers to cut holiday time and other benefits to workers aged 18-24.

Many young people said the law treated them as second-class citizens.

“We wouldn’t have got paid overtime, it would have cut our unemployment benefits and our holidays down to just 15 days, we may be young, but we’re just like other human beings and we need time to rest,” hotel worker Ebelin Ortega said.

The repeal is yet another blow to Peru’s President Ollanta Humala’s as his political party ceased to be the biggest voting bloc on Sunday.

The government said the goal of the law was to increase formal employment as the country is in the middle of the worst economic slowdown in five years, but experts said cutting benefits wouldn’t get more formal employment for the young.