Colombia’s President Gustavo Petro signs labour overhaul into law after two failed attempts – The Hindu

Colombian Labour Reform Law Signed: A Step Towards Sustainable Development Goals

Introduction

On June 25, 2025, Colombian President Gustavo Petro signed a significant labour reform law aimed at shifting the balance of power from employers to workers. This legislative milestone represents a key victory for the left-wing administration and aligns with several Sustainable Development Goals (SDGs), particularly those focused on decent work and economic growth (SDG 8), reduced inequalities (SDG 10), and good health and well-being (SDG 3).

Key Provisions of the Labour Reform

• Increased overtime pay for salaried workers.
• Restrictions on the use of short-term contracts.
• Mandatory medical coverage and social security for gig economy workers, including food delivery drivers.
• Provision of proper contracts and benefits such as vacation time and severance pay for student interns.

These measures contribute to promoting decent work conditions and social protection, directly supporting SDG 8 and SDG 3.

Legislative Challenges and Political Context

The labour reform faced significant opposition in Congress, being rejected twice before narrowly passing following a public referendum initiated by President Petro. The law was signed at the historic home of Simón Bolívar, symbolizing a commitment to social justice and workers’ rights.

Support and Opposition Perspectives

Support from Trade Unions and Allies

The reform was welcomed by trade unions and political allies as a step toward reducing inequality and improving labour rights, supporting SDG 10.

Concerns from Business and Opposition Lawmakers

• Concerns over increased costs for businesses, particularly small and medium-sized enterprises.
• Potential risk of mass layoffs pushing workers into the informal economy, which comprises over half of Colombia’s labour force.
• Criticism that the law does not fully cover informal workers without contracts.

These challenges highlight the need for complementary policies to support small businesses and informal workers, aligning with SDG 8 and SDG 1 (No Poverty).

Compromises and Limitations

To secure legislative approval, President Petro had to compromise on several provisions, including:

1. Extended paternity leave.
2. Paid leave for women experiencing debilitating menstrual pain.
3. Expanded collective bargaining rights for unions.

Despite these limitations, the law marks progress toward gender equality (SDG 5) and decent work conditions (SDG 8).

Significance Amidst National Challenges

The signing of the labour reform occurs during a tumultuous period for Colombia, with ongoing security challenges including bombing attacks and an assassination attempt on a prominent political figure. The reform aims to strengthen social protections and economic stability, contributing to peaceful and inclusive societies (SDG 16).

Future Outlook and SDG Alignment

• Decent Work and Economic Growth (SDG 8): The law enhances worker protections and formalizes gig economy employment.
• Reduced Inequalities (SDG 10): By empowering workers and improving labour rights, the reform targets inequality reduction.
• Good Health and Well-being (SDG 3): Mandatory medical coverage for gig workers promotes health security.
• Gender Equality (SDG 5): Although some provisions were removed, the reform sets a foundation for future gender-related labour policies.
• Peace, Justice, and Strong Institutions (SDG 16): The reform supports social justice amid national instability.

The government has also pledged to introduce new legislation to support small businesses, which will be crucial to balance economic growth with social equity.

1. Sustainable Development Goals (SDGs) Addressed or Connected

1. SDG 8: Decent Work and Economic Growth
   • The article focuses on labour reforms aimed at improving worker protections, overtime pay, social security, and benefits for gig and contract workers.
   • The law’s intention to shift power towards workers and reduce inequality aligns with SDG 8’s aim to promote sustained, inclusive economic growth, full and productive employment, and decent work for all.
2. SDG 10: Reduced Inequalities
   • The President’s goal to reduce inequality in Colombia, one of the most unequal nations in the region, connects directly to SDG 10.
   • The labour reforms seek to provide social security and benefits to informal and gig workers, addressing inequality in labour rights and protections.
3. SDG 1: No Poverty
   • By improving labour conditions and social protections, the reforms contribute indirectly to poverty reduction through better income security and social benefits.
4. SDG 5: Gender Equality
   • Though some provisions related to paid leave for women with menstrual pain were removed, the issue was initially part of the reform discussions, linking to gender equality concerns.

2. Specific Targets Under Those SDGs Identified

1. SDG 8 Targets
   • Target 8.5: Achieve full and productive employment and decent work for all women and men, including young people and persons with disabilities, and equal pay for work of equal value.
   • Target 8.8: Protect labour rights and promote safe and secure working environments for all workers, including migrant workers and those in precarious employment.
2. SDG 10 Targets
   • Target 10.4: Adopt policies, especially fiscal, wage and social protection policies, and progressively achieve greater equality.
3. SDG 1 Targets
   • Target 1.3: Implement nationally appropriate social protection systems and measures for all, including floors, and achieve substantial coverage of the poor and the vulnerable.
4. SDG 5 Targets
   • Target 5.4: Recognize and value unpaid care and domestic work through the provision of public services, infrastructure and social protection policies.

3. Indicators Mentioned or Implied to Measure Progress

1. Indicators Related to Labour Rights and Employment
   • Proportion of workers covered by labour legislation and social security (implied by the law’s requirement for medical coverage and social security for gig workers).
   • Average hourly earnings of employees, including overtime pay rates (implied by increased overtime pay provisions).
   • Proportion of informal employment in total employment (implied by concerns about informal workers and the informal economy).
   • Number of workers with formal contracts and benefits (implied by the law’s provisions for student interns and gig workers).
2. Indicators Related to Inequality and Social Protection
   • Coverage of social protection systems (implied by the extension of benefits to gig economy workers).
   • Income inequality measures such as the Gini coefficient (contextual to the goal of reducing inequality).
3. Indicators Related to Gender Equality
   • Provision and utilization rates of paid leave for women (implied by the discussion on paid leave for menstrual pain, though it was removed).

4. Table of SDGs, Targets, and Indicators

Source: thehindu.com