The Constitutional Chamber in Costa Rica (Sala IV) annulled this week 11 salary increases that benefited employees of the state refinery (RECOPE).

The benefits were granted to the employees in what is called the “Convención Colectiva” (collective convention), which is an agreement celebrated between one or several worker unions and their employers to regulate the conditions under which the work will be given and all aspects related to the same. Collective Conventions stand as a law (Art.62 of the Political Constitution) and its norms must be considered in individual or collective contracts.

Benefits annulled were contained in the articles 32,36,86,103,105,106,108.137,141,142 and 152, and included among others:

• Limit to the “cesantía” (the compensation that an employee receives as part of their liquidation when they are fired from service
without justified reason) which was established in 20 years and will not be limited to 12 years of payment as it had been
determined by the Constitutional Chamber for all public employees back in June 2018.
• The obligation Recope had to cover dental services to the immediate family of the employees (article 86).
• Permits of two days with salary to attend the marriage of a son/daughter.
• Additional funds given when a worker got married and for each child that was born.
• The scholarships granted to the employees’ children and the funds to purchase school supplies.

These to just mention a few.

The vote of the Constitutional Chamber was the result of two unconstitutional actions filed by former member of congress Otto Guevara and the president of the Chamber of Industries of Costa Rica, Enrique Egloff.

Sala IV considered that the benefits contained in the Convención Colectiva affected the consumer and were “unreasonable and unproportionate”.