While fast food firms such as McDonald’s and Domino adopted the measure, Falabella indicated that it will not be welcomed for now.
It has been eleven days since the Employment Protection Act came into force and the announcement of companies to take advantage of the new regulation has become a sign of concern for their workers. Now, it was the turn of the firm chaired by Horst Paulmann, Cencosud, which notified its partners in the retail sector the cessation of its services earlier this week.
According to industry sources, so far Johnson and Euro Shopping – belonging to the conglomerate – agreed with the retailer to join the measure, while Paris is still in negotiations. Through a statement, the Paris Workers Federation said that after a virtual meeting with the company, they were informed that the employment relationship would be suspended for 90 days.
In detail, Cencosud notified them that April salaries will be obtained from their savings at the AFC, while loan payments will be delayed and the percentage of discounts in their stores for their employees will be increased. In the case of Jumbo it will go from 12% to 14%, while in Santa Isabel it will go from 10% to 12%.
The federation said it deeply regrets ‘the decision taken by Cencosud, because we know that this is a great company with a strong and solid back’.
The determination of the firm led by Paulmann adds to the resolutions already taken by Ripley, La Polar and H & M, which belong to the 23,000 employers who have come to make the procedure to the Administrator of Severance Funds (AFC).
On the other hand, Falabella and its business units indicated that they will not use, for now, the Employment Protection Law. The company is making an effort to face the current crisis, which is constantly evaluated according to how the virus is evolving’, they pointed out to DF .
Casinos to suspend employment relationship
Enjoy and Sun Dreams notified their workers – on Friday 10th and Monday 13th April respectively – of the temporary cessation of work due to the health emergency that forced them to stop their operations three weeks ago.
In a statement, Enjoy indicated that although it is a difficult measure ‘to project the continuity of our operation in the future, it is indispensable to act responsibly with measures like these that seek to face the closure of all our operations in Chile for an undetermined time. It seeks to safeguard the labor supply of our employees. Regarding the extension, the company said that it will depend on the announcements of the health authority regarding the lifting of the ban on operating the company’s hotels and casinos, determined on March 17.
Meanwhile, Sun Dreams communicated on Monday to its workers in Puerto Varas that ‘under the perspective of indefinite closure and with the main objective of safeguarding each of our hosts in the long term, the company will be under the Employment Protection Law’. He explained that there will be an exception in the case of employees who work in the context of minimum staffing, operate with teleworking or are on medical leave.
Despite not receiving income for weeks, the firm said that the March salary payments would be made according to the terms of each employment contract. Regarding social security and health contributions, they confirm that they will continue to pay them, but that the remuneration will be paid by the Severance Insurance Fund (AFC) of each worker.
We are confident that we are making the right decisions that will allow us to safeguard the greatest number of jobs in the future,” the firm said.
McDonald’s and Dominoes join the norm
Fast food chains, which have been closed for three weeks due to the health crisis, have also started to inform their workers about the cessation of work and suspension
In a statement, McDonald’s said that ‘we are focused on ensuring the continuity of the operation in the country and retain the source of employment of our employees, so we are complying with the new Employment Protection Act, which will allow access to resources of unemployment insurance.
Meanwhile, Dominó informed his collaborators that due to the prohibition of indefinite operation and that a date for reopening is not in sight ‘we find ourselves in the imperious need to take advantage of the Employment Protection Law, which is the only possible way to be able to open the doors again in the near future’.