El Salvador’s Higher Labor Council Agrees on Key Reforms to Drive Economic Growth

The Higher Labor Council (CST) held its first session this week, setting an ambitious agenda aimed at strengthening El Salvador’s economy, generating employment, and modernizing the country’s labor framework.

The tripartite body — comprised of government officials, employers, and workers — unanimously agreed on seven priority issues: economic reactivation, transition from informal to formal employment, export promotion, human talent development, job creation, modernization of labor legislation, and extending the term of the union sector.

CST President Rolando Castro emphasized that these points were identified as urgent priorities to be developed in phases: short-term, medium-term, and long-term. Technical teams representing all three sectors have already been formed to refine proposals and present them at the next council session on September 17.

“This work will allow us to deliver the first agreements to President Nayib Bukele, who will determine whether they are implemented through a new law or a transitional framework,” Castro explained. He also noted that more than 25 public and private institutions have been consulted, with final input expected from self-employed and informal workers.

CST Vice President Jorge Arriaza stressed that the consensus-based agenda reflects key national priorities such as industrial development in eastern El Salvador, foreign and domestic investment, and the promotion of skilled human capital. “If we make progress, all three sectors will contribute to the country’s economic growth,” Arriaza stated.

Marta Campos, vice president of the CST, added that extending the union sector’s mandate is also part of the agenda, as it would secure continuity in advancing labor reforms.

The CST also confirmed that it has shared its progress with the International Labor Organization (ILO) and will present its proposals at a regional meeting in the Dominican Republic this October, attended by representatives of workers, employers, and the government.

With this consensus-driven roadmap, the Higher Labor Council is positioning itself as a key driver of El Salvador’s economic growth, labor modernization, and social development.