MercoPress. South Atlantic News Agency

Peruvian court rules against redundancy

Peru's Supreme Tribunal ruled the reinstatement of hundreds of employees left redundant by the country's telecommunications company. The ruling shocked the business community that is now assessing the impact on future investments.

"This entails an incalculable damage to the business atmosphere of the Peruvian economy", read a press release from Telefónica del Peru, now under Spanish control. "In moments when we're all working for the recovery of the economy, this ruling will have a negative impact in the creation of jobs by private companies", adds the release. Telefonica workers appealed the company's decision to fire several hundred employees claiming it was a concerted redundancy program.

"This means companies can't appeal any longer to redundancies with compensations", indicated Telefonica del Peru lawyer Aníbal Quiroga.

The 1993 Peruvian Constitution contemplates the firing of employees without any cause, but if they are given a significant compensation.

"This is a flash of hope for those thousands of employees that have been fired in the last years", said Mario Gorriti, spokesperson for the redundant Telefonica workers. However Mr. Julio Favre, president of the Peruvian Confederation of Private Enterprises underlined the ruling means the country is back to the 1979 Constitution, when job stability was paramount, "and this would be most negative for the country's economic prospects".