The head of the Commerce Union met with the Minister of Human Capital, Sandra Petovello, and expressed his support for the new compensation system proposed by the national government.
The general secretary of the Argentine Federation of Commerce and Services Employees (FAECyS), Armando Cavalieritoday expressed his “adherence” to the new compensation system established in the mega DNU of the Government of Javier Milei, and said that it will be adopted by his union, reported the Ministry of Human Capital in charge of Sandra Petovello, with whom the union member met.
“The union member expressed his support for the ‘Cessation Fund’ figure, included in DNU 70, which establishes a system for collecting immediate and fair compensation, in order to be able to face future layoffs. A campaign promise by Javier Milei that today is reality”he indicated Petovello on your official X network account.
Commerce will join the Cessation Fund
The meeting was held in the building of the former Ministry of Social Development, where they were Cavalieri, Petovello and Omar Yasin, Secretary of Labor.
“The only thing that interests us is that people have jobs,” said Minister Petovello.according to the portfolio on its social networks
He added that the union member informed the officials that, during January, at the opening of joint meetings, “will include the ‘Cessation Fund’ which will be developed together with related business chambers”.
After the meeting, Yasin Indian: “The Secretariat is open to permanent dialogue to provide well-being to Argentines.”
Cavalieri was re-elected this year by surpassing his opponent Ramón Muerza in the elections of the Federal Capital Commerce Union and began his tenth consecutive term, which will keep him at the head of one of the main unions in the country until 2026. He also maintained ownership of the FAECyS.
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How the Termination Fund works
He Decree of Necessity and Urgency (DNU) signed last Wednesday by the president Milei provides that each union can negotiate with the business sector that corresponds to the replacement of the current one compensation system for dismissals without cause by a regime similar to that in force for the Construction Workers Union (UOCRA). But what does it really consist of?
The construction workers union constituted a unemployment fund where the employer deposits -during the first year of work- the 12% of the worker’s monthly salary to a bank account. In the second year of the employment relationship, this percentage is reduced to 8%. The amount generates interests in favor of the workerwhich are unseizable and freely available once the employment relationship ends.
This scheme would aim to replace the Severance pay and it would require consensus between the business chambers and the unions representing each activity, being established based on the collective labor agreement.
Source: Ambito
