How to Destroy Jobs
Boehringer Ingelheim Colombia obtained Top Employer certification for the seventh consecutive year Photo: Courtesy Boehringer Ingelheim
TL;DR
- A 23% increase in minimum wage is expected to cause job losses and reduced income.
- The security and surveillance sector, employing 390,000 people, has tariffs regulated and indexed to the minimum wage.
- Tariffs for security services will increase by over 30% due to the minimum wage hike and labor reforms.
- A 2002 decree established a minimum tariff for security services without considering differentiated costs.
- The increased cost of security services may lead companies to replace them with technology or less specialized services.
- Substitution of services like porterage or maintenance will likely result in lower income and less job security for workers.
- Adoption of surveillance technology will lead to job destruction, impacting formal jobs with higher incomes.
- Companies facing high risks, such as those in value transport or mining, will bear the increased costs, potentially leading to further restructuring and job losses.