Since the severance pay law was modified in 1997, companies and employers have been obligated to regularly deposit the money in trust at local banking institutions for their safekeeping. Banks manage the money, generate interest and provide daily statements online to the workers. Of course, the Government did not participate in this, it paid severance out of the regular budget, always underestimating how much it needs, which means that if you quit a Government job, it can take months, if not years to get your payment.
In contrast, when a private worker quits, he calls his bank, signs a form and the money,which is well-managed, goes directly to the workers account.
But in its ever changing need for money and control, Chavez just announced that in the new Labor Bill, this will be done by the Government itself. Another day, another new bureaucracy, another rip-off.
Just think, the same Government that can’t produce a balance sheet for Fonden when it is required, will now manage, invest and handle billions of Bolivars and millions of daily transactions and will attempt to give the workers daily balances online. Dream on!
And then you tremble when Foreign Minister Maduro says that this will create a “giant fund” of “national savings” and…”also for investment”. Which simply means that the Government has set its eyes on this money for its “investments”. I imagine that they will fund housing projects, electric power stations in Venezuela (Or Cuba?) and the private workers will start having the same problems Government workers have. Some will never collect, or will be paid with Cocoabonds, the day even PDVSA will not be able to pay for things anymore.
The infinite predatory ability of Chavez and his Government now sets its sights on the workers money. As Chavez pleaded with Christ, he needs time to do “more”, sure, he wants to scrape the bottom of the barrel, before he sells the barrel itself.