Puerto Rico’s new gov signs controversial labour reform law

SAN JUAN, Puerto Rico – Puerto Rico’s new governor has signed a labour reform bill that targets the private sector and aims to stimulate the island’s economy amid concerns that it infringes on workers’ rights.

The law approved on Thursday will reduce a mandatory Christmas bonus, reduce overtime pay from double time to time and a half and implement a nine-month probation period for most workers. It also strikes down a previous law that authorized extra pay for those working on Sundays.

The changes are among those sought by a federal control board that said regulations tied to employee retention, severance pay and flexible scheduling should reflect U.S. standards.

Supporters say the law will stimulate investment, while opponents argue that it will only serve to worsen the exodus of professionals to the U.S. mainland.