fanning wrote:It has been approved by the congress. It only needs a formal approvement by the president, and then a 'reglamento' of Ministerio de Trabajo. Then ALL restaurants, bars, hotels, discos etc. are obliged to charge you 10% extra and distribute that amount over the workers ( which results in doubling up to six times their salary )
This simply will result in a lot of companies who work formal to go bankrupt, and increase informal companies.
I did a bit of research, for example Swiss hotel, a 5 star hotel, actually pays now the services to their employees, resulting that a cleaner makes around S/. 1800, a very good pay for a worker. But that is in a FIVE star hotel. Not every small hotel or bar can afford that type of wages for cleaners. When the new law comes into effect, they will have to pay that type of salaries to their workers, resulting that the go out of business or go informal.
I can understand that a government wants to increase wages, by 5% - 30%, but how can they be so naive to think that overnight they can increase salaries with 200% - 600% without affecting business.
And this comes from Alan Garcia and the Apra, the new government will only be more business unfriendly ( or at least not take away benefits of workers established by a former president.. )
sbaustin wrote:I agree with you but you are assuming that prices are fixed which they are not. You have to assume businesses will pass along the costs to clients (ie room and food prices go up). If the higher prices result in considerably less business (which depends) then you're in trouble.
fanning wrote:sbaustin wrote:I agree with you but you are assuming that prices are fixed which they are not. You have to assume businesses will pass along the costs to clients (ie room and food prices go up). If the higher prices result in considerably less business (which depends) then you're in trouble.
Many businesses are run with a 5-10% profitmargin, now they will be forced to work with 15%-20% profitmargins, which your informal neighbour business is not charging.
You would die as a business. And apart from that, it is not realistic to increase wages by a factor of 2 up to 6. ( in the case of fastfood restaurants, with a lot of turnover, and low margins ).
My problem is that it is not a university debate, but a reality which is now fixed in a law !
Friend working at The Miraflores Park Hotel is telling us that the hotel there has capped the amount they will pay out to employees,above that amount the hotel keeps, They are some of the biggest crooks in Miraflores.
Pollo mani wrote: I hope one day they get caught but the office of trabajo and forced to pay huge fines for the mistreatment of employees there.
fanning wrote:We, as a business, are now finally in a situation that we (almost) obey all vigent laws, and specifically the working-laws, but this law would make business live impossible. I could stay formal, and loose our customers to other 2-3 star hotels who break the law, or also break the law .. What a choice ..
fanning wrote:Almost in the sense like for example for the safety checks of Defensa Civil you are not allowed to have any obstructions in your hallways, and as soon as they leave, you put the plants and pots back in place ..
MarcoPE wrote:We went to Manolos yesterday in Miraflores and my wife noticed a 10% service charge on the bill. I assumed this is the law in effect (early possibly) or is this a different charge?
Polaron wrote:Maybe it was the Overtly Gringo Tax that was added to the bill. Or maybe it was just the VAT tax.