The labor reform and the rural sector: These are the figures for the labor market in the agribusiness sector

Within the framework of the discussion on the labor reform bill, the Sociedad de Agricultores de Colombia (SAC) presented in its institutional magazine an overview of the labor market in the agricultural and livestock sector.

This is a key sector for the country, which produces more than 70 million tons of food per year, contributes close to 9% of the national GDP, and is the second largest generator of employment in the country, after the trade and vehicle repair sector.

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Nevertheless, it presents serious structural problems, which make it highly in need of labor reform, but at the same time very sensitive to the decisions adopted in this regard.

In this regard, the SAC emphasizes the complex dynamics of the labor market in the livestock sector, “which do not necessarily coincide with the current labor regime and put rural and agricultural workers at a disadvantage, affecting their income level and therefore, their quality of life”.

These are the figures of the labor market in the agricultural sector presented by the union.

Agricultural activities employ many people but in a precarious way

Fifteen percent of workers nationwide, around 3.22 million, are employed in agricultural and livestock activities.

However, 56% of these people are self-employed, a category that is usually linked to informality, since among the informally employed, DANE includes those “self-employed workers who work in establishments with up to five people, except for independent professionals”.

Of the 3.22 million agricultural workers in the country, another 21% comprise unpaid workers in companies or businesses belonging to others. An additional 14% are workers or employees of private companies and less than 5% “of those employed are employers, unpaid family workers and, to a lesser extent, day laborers or laborers”.

Informality and low income, characteristics of the labor market in the agricultural sector

The informal labor market is one of the issues of greatest concern to the union, in view of the discussion of the labor reform. In rural areas, made up of population centers and dispersed rural areas, labor informality affects 86% of the employed population. This alarming figure is much higher than the national figure of 55.82%.

In this context, it comes as no surprise that the average income of agricultural workers is lower than the minimum wage. DANE estimates that, on average, monthly income will be $838,244 in 2023.

And, when disaggregated according to the position occupied, day laborers and self-employed workers have the most precarious incomes. In the case of the former, the average income is $216,667. For the latter, the average income is $560,295.

For women, the picture is even more complicated. They earn on average 14% less than men.

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Most agricultural workers are men and there are few young people

Another fact that differentiates the labor market in the agricultural sector from the national average has to do with the scarce presence of women. In fact, although there are more women than men in Colombia, workers in the livestock sector are predominantly male. According to the SAC, 84% are men and only 16% are women.

Another data included by the SAC in the article is related to the age of farming workers, which confirms the progressive aging of this population. According to the union, 1 out of every 4 agricultural workers -25.5%- is over 55 years old.

When looking at the percentage of agricultural workers who are over 45 years of age, it is evident that it is 42.4%. Aging is more prevalent among the male labor force since this percentage rises to 43.52% in the case of men and drops to 36% in women.

Meanwhile, young workers in the sector do not reach 20%.

Elderly protection: a pending task

Eighty-seven percent of workers in the agricultural sector do not contribute to any pension fund. This is undoubtedly a worrying figure, especially considering the progressive aging of this population, as well as the low income they receive during their working lives, which prevents them from saving for their old age.

Of the 13% that do contribute to pensions, most do so in private funds. This 13% is distributed as follows: 7.9% contribute in private funds and 4.1% in Colpensiones. The remaining 1% participates in a subsidized model, explains the SAC.

Access to the health care system: broad coverage, but mostly subsidized

More than 94% of agricultural workers have access to health care. The SAC highlights this wide coverage of affiliation to the service, although it clarifies that “the protection model is fundamentally subsidized (80% of the workers)”.

The viewpoint of the president of the SAC

Faced with the difficult situation of the labor market in the agricultural sector, the farmers’ union recognizes the importance of pursuing a labor reform, seen as a dream of the countryside.

However, in the editorial of the institutional magazine, Jorge Bedoya, president of the SAC, points out that the labor reform must contribute to the reduction of informality and encourage the generation of new formal jobs, two objectives which, in his opinion, are not being achieved.

After disclosing several aspects in which he considers that the articles of the labor reform should be improved, among which are the new provisions regarding temporary services, the elimination and prohibition of collective bargaining agreements, the changes in the requirements to declare strikes, and the non-categorization of the agricultural sector as an essential public service, he concludes the following:

“From the SAC we have submitted 23 proposals that we hope will be taken into account at the time of the discussion because we are playing with fire.

The Government and the Congress cannot go down in history without having done something that contributes to reduce labor informality. Protecting the rights of those who today are formal workers is fine, but if we do nothing against labor informality, what future are we going to leave to young people who want to move from the countryside to the cities? And what future are we going to leave to those millions of Colombians who hope to be able to enter a labor market that dignifies and protects them?

The text as it is, unfortunately, in the case of rural areas, is a big dream that can be a big nightmare”.

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