Adelmo Becerra: ‘It Is Essential to Defend Labor Rights Against Regressive Reform’

Adelmo Becerra is a Venezuelan trade union representative from the National Institute for Training and Socialist Education (INCES) and also a member of David Hernández Oduber Revolutionary Current (CREDAHO). In the past, he worked as an instructor at INCES and as a worker in the steel industry in Ciudad Guayana. In this interview, Becerra discusses the Venezuelan government’s recent labor policies under US sanctions, the growing labor reform prospects, and the present struggles and challenges facing the working class.

On May 1, the Venezuelan government raised non-wage bonuses while maintaining the minimum wage frozen. What was your reaction to these announcements? How do you place them in the context of recent labor policies in Venezuela?

The announcements represent a continuity of the labor policies of recent years. There had been expectations for the restoration of the minimum wage in the short term. According to Article 91 of the Constitution, it must be adjusted once a year. Naturally, it would be a partial and limited restoration. But it is important to place the announcements in the context of various processes currently unfolding in the labor sphere.

In Venezuela, the Social Dialogue Forum, a body coordinated by the International Labour Organization (ILO), has been in place since 2021. Several trade union federations participate in this forum, including the Independent Trade Union Alliance of Venezuela (ASI), to which the INCES union belongs, the Venezuelan Workers’ Confederation (CTV), the Bolivarian Socialist Workers’ Federation (CBST), as well as government representatives. The Social Dialogue Forum is not binding, but Venezuela has ratified conventions, including Convention 26, which establishes consultations with trade union organizations for setting the minimum wage. However, a mechanism for establishing it has not yet been agreed upon.

At the same time, the government led by Acting President Delcy Rodríguez has established the National Dialogue for Labor Consensus, which includes the CTV, ASI, and CBST labor federations, along with representatives from business associations FEDECÁMARAS and FEDEINDUSTRIA, and government officials.

Then there is the struggle on the streets that has unfolded in the country in recent years. I would single out the August 2018 Program for Growth, Recovery, and Economic Prosperity as a starting point. This program produced two instruments that have denied wage and labor rights established in collective bargaining agreements, even disregarding the Constitution and labor legislation. I am referring to Memorandum 2792, from October 2018, which sets out the broad guidelines regarding the suspension of collective bargaining rights. And then there is the 2021 ONAPRE Directive, which addresses its specific application. Both instruments remain in force, and their repeal has been a constant demand in the workers’ struggles.

So, back to May 1, there was no restoration of the minimum wage. However, the announcements stem from agreements reached at the National Dialogue for Labor Consensus. And the signed minutes refer to a “wage consultation process” that will begin in May. This indicates that the issue of the minimum wage is far from settled. Similarly, the agreements “urge” the private sector to establish this same US $240 income floor, specifying that it may be through “non-wage bonuses,” although in reality there are no mechanisms to enforce it.

But the minimum wage is not an isolated issue. We have heard spokespersons from both the government and the private sector speak of labor reform. Just in recent days, in a meeting of the Social Dialogue Forum, one of the agreements was to “coordinate consultations of labor-related laws with the National Assembly.”

Let us take a closer look at the issue of bonuses versus wages. What are the consequences of this “bonus-ization” policy?

The main impact is on workers’ entitlements, specifically in the form of social benefits. These benefits accumulate over the course of the employment relationship, and their primary function is to recognize seniority so that it can be taken into account when paying out benefits.

But there is also another concept: retroactivity. This means that benefits are paid based on the final salary. Thus, when an employment relationship ends at a private company, the benefits paid as compensation are calculated based on the final wage and the duration of the employment. The same applies to those retiring from the public sector, or from a private company that offers a retirement plan –which is very rare in Venezuela.

This issue is very important because it has been at the center of the historical Venezuelan working-class struggles following the oil-led industrialization and the 1936 Labor Law. Social benefits allowed Venezuelan families to have assets, purchase homes or other property, and also served as a safety net in contexts of unemployment or economic crisis. This safety net no longer exists today because the minimum wage has been effectively eliminated.

Then there are other important factors, such as social security contributions, which fund the Venezuelan Social Security Institute (IVSS). This is a universal solidarity-based system in which both employers and employees contribute, and it serves as the economic foundation for old-age pensions and other IVSS social support initiatives, such as in healthcare. So, this system is also in crisis because contributions are computed based on wages.

The result is that for the private sector, both social security contributions and severance pay are practically free right now, and that in turn affects job stability.

Speaking specifically about INCES, which is a state-run training institute, what is the current employment situation like? Do the staff work full-time?

According to data recently provided to us by the authorities, there are approximately 11,500 people on the payroll, 6,800 of them active workers, and the rest are retirees. The vast majority receive only the “economic war” and bonuses, now set at $200 and $40 a month, respectively. Through our collective bargaining agreement, retirees also receive the food bonus, which is not the case in general in the public sector.

In recent years, as a union, we have held discussions with INCES authorities and the Ministry of Labor –which oversees the institute –to ease the requirement that people come to work every day while we try to secure better conditions. Simply put, if their income isn’t enough, they should have the option of trying to find a second or third job. With the recent increases in bonuses, the authorities are putting more pressure on workers to return to full-time work, but it’s complicated.

We are still in that struggle to improve conditions, even though we have not even been able to make progress on a memorandum of understanding to improve the socioeconomic clauses of the current collective bargaining agreement. But that’s the priority.

Turning now to the private sector, you have participated in the Observatory for Labor Dignity, which has investigated current working conditions in Venezuela. In general terms, why the focus on the private sector? And what is the reality of that world?

The first reason is that unionization rates in the private sector have historically always been very low in our country. At its peak, in the 1970s, it reached 30%, and today it is likely below 15% –and that is being optimistic. We must take into account the massive migration of recent years. It is a very low unionization rate, and in sectors such as retail or services, there are practically no unions.

Consequently, the level of job insecurity and vulnerability is much higher, especially given the government’s policy of restraining official workplace inspections based on tacit agreements with the private sector under the pretext of “promoting employment.”

One issue that came up repeatedly was the lack of maternity protection which was one of the advances of the 2012 Labor Law. Right now, in the companies we investigated, such as [department store chain] Traki or [textile distributor] El Castillo, no woman wants to get pregnant because that would mean immediately losing their job. Not only that, but it would also make it impossible to get a reference letter or a recommendation for another job.

It is important to stress that the approach to undermine or marginalize collective bargaining agreements was not limited to the public sector. The private sector also adopted it. Under the guise of “protecting jobs”–claiming that companies would go bankrupt otherwise –many employers sent workers home on minimum wage, with some being called back to work at the employer’s discretion.

Given the context of crisis and precariousness, under US economic sanctions, that has persisted for several years now, is the impact on workers’ awareness noticeable?

Indeed, there is a very acute lack of awareness regarding labor rights. The new generation of workers is entering the workforce with virtually no knowledge of the rights they hold by law, in part because they have never had access to them.

So, issues like employment contracts, pay stubs, or even working hours themselves are a problem. It is very common to have 10, 12, or even 14-hour workdays, or for the two days off per week not to be upheld. At Traki, this is usually respected, although the two days are not necessarily consecutive. In El Castillo, the average is one and a half days. In El Castillo, there is also a practice of having workers sign their contract and a resignation letter at the same time, which is obviously illegal.

Another characteristic is high turnover. Fixed-term contracts have become the norm. Although after several contracts the law grants the right to continued employment, this is practically nonexistent. The vast majority of people move around a great deal between jobs. This is, of course, made possible by the fact that benefits are nearly non-existent and it is extremely cheap to dismiss a worker, which in turn keeps people in a much more precarious situation.

But there is an important factor to consider: the shift in subjectivity –and this, of course, is not a phenomenon unique to Venezuela. A few days ago, I watched an interview with a North American researcher who found that for young people in the US a job at Starbucks seems like a good opportunity –better than average. Here, in some of the testimonies we collected, young people expressed satisfaction with working at the Traki department stores. They earn some $250 a month, work 9- or 10-hour shifts –while conditions elsewhere are worse –have two days off a week, and would like to stay there. Therefore, the notion of work with rights has also eroded. Issues like overtime pay, not to mention social security, become irrelevant due to the precariousness of the present. The employment relationship, which includes rights and mechanisms to protect them, is beginning to be viewed simply as a commercial transaction.

Labor reform talks are underway. Government spokespeople talk about “updating” the law following the impact of US sanctions, while private sector spokespeople are also voicing their demands. What is currently at stake?

I think there are several aspects to consider. We are clearly witnessing an aggressive campaign being waged by the media, along with well-known economists and influencers, to impose a narrative that any wage increase will cause inflation. As such, the only way to raise wages is to reduce employers’ responsibilities and eliminate the retroactive nature of labor benefits.

The 2012 Labor Law reinstated the calculation of benefits based on the last salary. This had been modified, amid much controversy, during the Caldera administration in the 1990s. Still, unlike proposals we see now, retroactivity was not completely eliminated. There is a proposal to let workers choose between receiving benefits immediately or accumulating them, which completely distorts the concept and takes advantage of current economic difficulties. If wages are insufficient, workers obviously prefer to collect as much as they can right away. Even if the current $240 minimum income was turned into salaries, this would represent less than 50% of the food basket for a family, according to different estimates.

I believe it is essential to reject the narrative promoted by groups like Fedecámaras, to reject the premise that we must give up our rights and historic achievements because there are no conditions to sustain them. For starters, there is a lack of transparency and information. We do not even have reliable information on the size of the economically active population. The last census was in 2011, and following the massive migration over the past decade, we do not know what the current picture looks like.

According to 2021 data from the National Institute of Statistics (INE), there were roughly 4 million workers in the formal private sector, just over 3 million in the public sector, and around 5 million pensioners. Therefore, with that precise data, and with transparent information on revenues, it would be possible to quantify whether or not there are resources. Because GDP was heavily hit by the US blockade but has been growing—according to the Central Bank, for 20 consecutive quarters –but the last adjustment to the minimum wage, to $30 per month, was in March 2022.

Another piece of data we lack is the distribution of surpluses among the workforce, private capital, and the state. According to research by former Minister Víctor Álvarez, the labor share reached 40% by 2010. Currently, according to estimates by researcher Carlos Dürich, that figure may be around 20%, which is what is typically observed in African countries with high levels of poverty and inequality.

We need all that data if we want to discuss what is possible or not, and how the wealth that is generated will be distributed. This is especially true in this context, where, outrageously, the US controls Venezuela’s oil sales. Now the Central Bank will be subject to external auditing, but the public still lacks information. So there is a second layer of opacity there. My perspective is that there are conditions for a restoration of the minimum wage, even if it is gradual and does not cover living costs.

In this complex context, both domestically and internationally, what is the path forward for the workers’ struggle in the country?

For me, there is one fundamental factor –one that has been evident in recent years –and that is social pressure. Workers are the only force that has exerted pressure on the government, and to some extent on the private sector as well, particularly since 2022. In 2023, the government placated the protests by introducing the “economic war” bonus. The minimum wage had been devalued to $5 at the beginning of the year, and 15 days later the government set the bonus at $25, and then in May at $70. Even if it happens through non-wage bonuses, it is a struggle with the bourgeoisie over the country’s income.

The May 1 increase, again via bonuses, is also a response to pressure from the streets. We will now see what happens with the wage consultations and labor reform plans. The challenge is to sustain the actions and protests over time. But that sustainability depends on unity.

And what are the challenges to building unity around the labor agenda? A few weeks ago, we witnessed an absurd demonstration by certain union factions asking for support at the US Embassy.

Precisely. On May 1, there was a unified demonstration that likely drew 3,000 to 4,000 people in Caracas, along with smaller marches in other parts of the country. Various labor federations were present, ranging from the more left-wing ones like the CUTV to those on the right or center-right like the CTV or ASI.

On March 12, we also had a united mobilization, but since then the forces have split. And that weakens us because it reduces our impact; the business leaders rub their hands together.

This division has partly to do with issues of leadership and protagonism, and with the fact that not all federations understand that we must play on two chessboards at this moment: on one hand, the negotiating tables, and on the other, applying pressure in the streets.

But the division is also due to a particular factor: a group called the Coalición Sindical, whose main focus is not so much labor or wages, but politics. It serves as the vehicle within the labor movement for María Corina Machado’s political faction, which is obviously trying to capitalize on labor issues for its own agenda. This group has no interest in joint actions to secure better conditions –even if only partial –for the working class; rather, its priority is to stoke conflict.

That is why we see actions such as demonstrations in front of the US Embassy, calling on Trump to intervene. But right now, the priority for the US is stability, so it can advance its energy and mining interests. It views social pressure as something the Venezuelan government must handle on its own.

In short, it is essential at this moment to have a united force with a specific agenda: to fight for the restoration of wages, for the reopening of collective bargaining negotiations, for the release of unjustly imprisoned workers and trade unionists, and to defend labor rights against regressive reform efforts.