LIMA (Reuters) - The government of Peruvian President Martin Vizcarra, fresh off its success in passing anti-graft proposals, is working on a less popular objective: relaxing the country’s labor laws.

FILE PHOTO: Peru's President Martin Vizcarra votes during a referendum on judicial and political reforms in Lima, Peru December 9, 2018. Peruvian Presidency/Handout via REUTERS

Finance Minister Carlos Oliva told Reuters on Thursday the government would work to pass less rigid labor laws in hopes of encouraging more “formal” jobs that are on the books, while cutting costs for companies and boosting productivity.

Doing so would be no small feat. Despite consecutive business-friendly governments, no recent Peruvian president has touched the politically sensitive topic of changing the country’s strong protections for formal workers.

Already, remarks by Vizcarra about the need for some sort of labor reform has angered worker unions and prompted the labor minister’s resignation.

“We know it’s complicated. We know it’s difficult. But at the same time we know we can’t use the head-in-the-sand approach of saying, ‘Let the next guy do it, it’s too hard,’” Oliva said in an interview in his office.

Vizcarra took office as a relative unknown in March after his predecessor resigned in a graft scandal. But his approval rating has risen to more than 60 percent after he proposed laws aimed at ending entrenched corruption, which a solid majority of Peruvians backed in a referendum this month.

Asked if Vizcarra would use his political capital to ensure passage of labor reforms, Oliva said, “We’ll take it to the end. We’ll use all our strength, all our skills to get the reforms the country needs.”

Peru ranks 128 out of 140 countries on best hiring and firing practices, according to the World Economic Forum’s 2018 Global Competitiveness Report.

Oliva said one goal would be to change a law that forces companies to rehire workers deemed to have been fired “arbitrarily” - a definition he said needs clarifying.

But other proposals, including provisions for remote and part-time work, would emerge from talks with stakeholders and lawmakers, Oliva added.

“It’s not like we have a secret recipe or legislation tucked away in a drawer that we’ll pull out when least expected,” Oliva said. “Our contribution is to discuss it and seek solutions.”

Oliva added that the government has sent Congress legislation to ensure that rebates on value-added taxes for mining and oil exploration companies are extended for another three years.

The rebates are set to expire on Dec. 31. Oliva said he expected Congress to pass the proposal, which the mining industry has said is key to spurring new discoveries in the world’s No. 2 copper producer.