Published On: Fri, Jun 22nd, 2018

Press Release: ‘New law for disbursement sick days is bad for the inner city and tourist product’

WillemstadWILLEMSTAD - DMO (Downtown Management Organization) fully supports the views of the Curaçao Business Association (VBC) and the Curaçao Hotel and Tourism Association (CHATA) regarding the new law to increase the number of sick days paid by the employer from 2 to 6 days. The last thing the economy of the inner city needs is extra costs for the retailers.

In addition to the arguments mentioned by VBC and CHATA such as the increase in labor costs, the reduction of employment, the negative impact on the productivity of the employees and the increase in work pressure on fellow employees, DMO also sees a risk in the reduction of the service level in the shops. The provision of permanent contracts will become more expensive and riskier with this new law, and more employers will opt for flex contracts with fewer associated risks. With the arrival of more flex workers with less experience, the service level in the stores will be reduced and the tourist product of Curaçao will deteriorate. Various studies in the Netherlands show that retailers would hire more people and give more permanent contracts if the risks for employers are limited.

Another risk of this new law is the passing on of the extra employer's costs in the product prices, ensuring a higher cost of living for everyone in Curaçao.

In short, a bad development for the economy and certainly also for the development of the inner city.

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