The deliberations will have as a framework the intention of the Executive to apply for this instance the guideline of 40% increases (it would give a new minimum of 46 thousand pesos) that it seeks to extend in the parities of the private and public sectors.
With the exception, explained in Ambit by a minister from the economic cabinet, that it will be an official commitment not to conclude the discussions this year but to keep the space for dialogue in operation to use it as many times as necessary. The Council for Employment, Productivity and the Minimum, Vital and Mobile Salary met twice in 2021 for the first time in recent history to determine a total increase of 52.7 percent.
The salary floor, key years ago to guide other joint discussions, adjustments in the informal sector and as a reference for various types of hiring, currently has its main impact on the value of social plans paid by the Government. This is the so-called “complementary social salary” that is equivalent to half of a minimum salary as well as the value of the REPRO subsidy paid by the Ministry of Labor to companies in crisis, among other programs.
Distrust
The Government will try to convince the labor centrals (CGT, CTA de los Trabajadores and CTA Autónoma) and the employers’ chambers (industry, commerce, banking, agriculture and services) of the convenience of its guideline with guaranteed revisions. In the unions, however, mistrust prevails due to an economic outlook that is still uncertain for the remainder of the year. Above all, due to the lack of a formal agreement with the International Monetary Fund (IMF) and due to possible consequences in the domestic economy of the war between Russia and Ukraine.
The 40% guideline that the Minister of Labor, Claudio Moroni, whitewashed, had arisen from a calculation by the ruling party associated with the 33% inflation that the Government had projected in its 2022 Budget, without parliamentary sanction due to the refusal of the opposition. The number for the increases was raised as an instance to overcome this eventual increase in the cost of living, always under the slogan that salaries should beat inflation. That expectation collides, however, with the projections of the consultants relieved by the Central Bank that expect a rise in inflation around 55% this year.
At the moment the ruling party exhibits the closure of the national teacher parity with a 45.5% increase and revision in September, and they allege that it respects the guideline suggested by Moroni because it contains a plus of just over one percentage point due to the lag suffered by the educators’ salaries last year against inflation, and another four points of recovery of purchasing power. In addition, the Federation of Oil Producers agreed for this year a 39% increase with revision, and the Banking Association ran until March the global negotiation for this year that was to start in January in exchange for fixed sums for the first two months of the year. Last January, a family of four needed 78,624 pesos of income to avoid being poor.
Source: Ambito
David William is a talented author who has made a name for himself in the world of writing. He is a professional author who writes on a wide range of topics, from general interest to opinion news. David is currently working as a writer at 24 hours worlds where he brings his unique perspective and in-depth research to his articles, making them both informative and engaging.
