Government to restrict collective bargaining in the public sector: What impact will it have?

The government of Dina Boluarte is seeking to curb collective bargaining in the decentralized sphere by regions and entities, preventing more than half a million public employees from being able to negotiate salary increases.

Since 2021, the collective bargaining law in the public sector has allowed for improvements in working conditions for workers. However, the administration of the Government of In Boluarte proposes to limit this law, initially blocking negotiation in the decentralized sphere.

Impact on public sector workers

Alberto Campos, general secretary of the Intersectoral Confederation of State Workers of Peru (CITE), explained in an interview with La República that the measure will affect 562,000 employees under labor regimes 276, 728 and CAS. These workers are distributed in more than 2,550 governmental, regional and local entities, as well as autonomous entities such as universities.

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Campos warned: “Collective bargaining will be prohibited in more than 2,550 state entities, including 1,980 municipalities, 33 universities, ministries, the Judiciary, Congress, among others. If the 100 soles increase seems little for the cost of living, the difference to be negotiated will be left without effect.”

Bonus changes for 2025

Starting in 2025, state workers will receive a monthly raise of S/100 and a bonus of S/200. Last year, the bonus was S/600, but it was reduced due to a projected deficit budget of S/214 billion. However, the Executive presented a higher budget of S/251 billion.