Labor reform

Hotels Grapple with New Labour Regulations, Seek Goverment Support

Barranquilla, colombia – The hotel industry in Atlántico is facing significant challenges as new labor regulations are implemented, forcing businesses to adapt their operational models and workforce management. While agreements have been reached with employees to phase in the changes, the economic climate and the specifics of the reforms are creating considerable strain, particularly for small and medium-sized enterprises.

The core of the issue lies in the reduction of the standard work week and the implications for staffing, especially concerning Sundays and holidays. mario Muvdi, president of cotelco Atlántico, explained that the new regulations necessitate a shift to a 44-hour work week, effectively meaning five working days. This change, coupled with the existing pressures of unfair competition and stagnant rates, is impacting the profitability of many establishments.

“Hotels with 27, 28 rooms, which have not been able to raise rates, that unfair competition has them affected, having some employees in the three shifts, having almost 70 Sundays and holidays in the year, lowering the work to 44 hours, they will already be five days a week where they are going to work and on Saturday mid-morning, because you have to establish some schedules that, in such a way, do not affect,” Muvdi stated. He emphasized that for businesses operating on thin margins, any increase in expenses can significantly impact profits.

to navigate these changes,hotels are actively pursuing conciliatory agreements with their staff. This includes exploring options like compensatory time off for Sunday work, effectively trading a Sunday shift for a day off during the week. The industry is also looking into the possibility of utilizing extra contractors for specific shifts to manage the workload without overburdening permanent staff or violating the new regulations.

“We are just starting with surcharges. We are going to accommodate ourselves in everything that is projected and the struggle and resilience to keep us and sustain companies is great, and we have to continue facing whatever comes,” Muvdi confessed, highlighting the challenging nature of the transition.

The economic conditions in the contry are exacerbating these challenges. Muvdi acknowledged that “the economic conditions of the country are affecting a lot” and that “small and medium enterprises are the most affected.” the hotel sector, particularly smaller establishments, is finding it difficult to absorb the increased labor costs without the ability to adjust their pricing accordingly.

Looking ahead, the industry is pinning its hopes on government support. Muvdi mentioned that the government has announced assistance for small and medium enterprises and expressed a cautious optimism, stating, “We are going to wait to see if these supports are really executed.” The full impact of the new regulations is expected to become clearer as 2026 approaches.

The implementation of these labor reforms underscores a broader trend of evolving employment standards and the ongoing need for businesses to adapt to changing economic and regulatory landscapes. The resilience and strategic planning of the hotel sector will be crucial in navigating these adjustments and ensuring the continued viability of businesses and employment opportunities.