In the year-on-year comparison, the average of real wages matched the dynamics of prices but the disparity between categories “was accentuated”said the consultant. Public wage earners accumulated an improvement of 3.2% per year due to the reopening of parity in 2021 and trained private workers an average real annual increase of 1.4%, which is far from the real annual 8.2% drop in salaries of unregistered workers.
Waiting for the INDEC to release the Salary Index for March, LCG assures that with the acceleration of inflation, salaries accumulate a retraction of 1.6% real average, with falls of 1.2% in the case of those registered and 3.7% in those not registered.
In this sense, they affirm that for March, with an inflation of 6.7%, “it will be difficult to recompose the real salary. The parity increase agreed for a large part of the private companies with an agreement was less than the increase in the CPI in most cases. It is to be expected that the unregistered will be more affected.”
“We don’t expect wages to win the race against prices this year. Even when the joint ventures began to close and some with a promise of review, most include minor increases to our price projection. On average, the agreed adjustments take a projected inflation of around 40% per year. Even when sectors have already committed to a review, the lag in the adjustments will end up reflecting a new year of real wage decline”.
What impact will joint agreements have this year
In the same sense as LCG, Econviews, the consulting firm of Miguel A. Kiguel y Asociados, assured that despite the parity and bonuses, the private real salary will fall 0.5% this year. “Our proxy index of salaries, which takes the already closed parity, shows an annual increase of 64% in 2022. End to end, they will be somewhat below inflation of 66%. Due to the nature of the agreements, salaries may adjust more to future price shocks, albeit with feedback risk,” they added in the latest survey.
For formal workers, “on paper, the 45/55% arrangements are in line with, and in some cases below, those signed in 2021. The novelty is in the resources used to cover themselves from another shock like the one in March : more reviews, bonuses, and shortened terms”. For Ecoviews, “For now, a total decomposition of the staggered annual parity regime has been avoided, but it exhibits more and more fissures as inflation accelerates.
Source: Ambito
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