By Alexandra Valencia

BOGOTA (Reuters) – Ecuadorean president Guillermo Lasso on Friday proposed new labor regulations and a tax reform targeting some $700 million in new revenue as part of a broad economic growth plan that will require approval from a skeptical legislature.

Since the 1980s, oil-exporting nations have struggled to survive under low crude prices. The pandemic has left 5.8million people out of work. Lasso negotiated this year with the International Monetary Fund a $6.5 million financing agreement to accelerate disbursements.

Lasso’s party doesn’t have majority in the National Assembly so tax and labor reforms must be passed. Lasso has already been requested by lawmakers to modify the budget proposed for 2021.

Lasso stated that the proposal he was presenting to Congress today was urgent in economic terms and could not be delayed. We are reasonable in what we present.

The plan outlines how the new labor regulations are intended to encourage telecommuting, and to allow for different work schedules. Lasso has denied the claims of unions that these changes would undermine worker rights.

Lasso claims that the plan would increase income tax deductions for those who make more than $24,000 per year. This will affect 3.5% percent of economically active citizens. This tax will also apply to people who have assets of more than $500,000, and companies that turn a profit in 2020 with assets more than $1 million.