Ecuador - Working conditions



Employment conditions vary greatly in Ecuador according to type of work, individual management styles, and susceptibility to government inspection. Inefficient government enforcement of labor codes and the pervasiveness of informal employment have created an insecure working environment where labor laws are flagrantly violated. Also, child labor is common, despite legislation that prohibits children under 14 from working.

About 12 percent of Ecuador's 4.2 million workers are unionized. The umbrella group Frente Unida de Trabajadores (United Front of Workers, FUT), the most visible labor advocacy organization in the country, is active in protesting against policies such as outdated minimum wage laws and the elimination of government subsidies on gas, which have a negative impact on Ecuadorian workers. Many formal sector workers, such as teachers, are also organized into independent unions to enable collective negotiation with management. However, the lobbying power of independent unions is weak and does little to improve the pay and benefits of employees. Unions are non-existent in the agricultural and informal sectors, where most Ecuadorians are employed and conditions are often worst. One poignant example of this phenomenon is the plight of Ecuadorian banana workers, who are unorganized and receive derisory wages of $2-3 per day. By contrast, unionized banana workers in Guatemala and other countries receive $10 per day plus benefits.

The Ecuadorian labor code, modified between 1991 and 1996, includes more than 600 articles regulating formal sector labor and the role of the government in arbitrating labor disputes. One of the most important policies outlined in the labor code is the official minimum wage, which was set at US$117.64 per month in 2001, a US$21 per month increase over the minimum wage in 2000. Minimum wage laws change frequently in Ecuador to compensate for rapid inflation. Employers in the formal sector are prohibited from firing workers without the permission of Labor Ministry inspectors. Other labor laws guarantee the right of large-firm workers to form trade unions but limit the length of solidarity strikes to 3 days, permit the hiring of temporary workers in export processing zones, and promise 15-day vacations, social security, and job training. Although these regulations are spelled out thoroughly in Ecuadorian law, they are enforced only in the formal sector and, therefore, do not benefit the majority of workers.

Unemployment lingered at 12 percent in early 2001, down slightly from 2000 but still well over the average rate for the 1990s. One of the most stubborn labor problems for the economy is the lack of skilled workers. The public school system focuses on academic and intellectual education and neglects vocational training, although there are few academic-oriented employment opportunities in Ecuador. The dilemma of vocational education is different for women, who are often pigeonholed into traditionally female work in the service sector, where they receive less pay than men do. While the GDP per capita was $4,940 in 1997, the GDP per capita for women was only $1,925.

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Varinder singh
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