Businessmen claim that the Government promised “increase or more subsidies”, but Transport denies

Businessmen claim that the Government promised “increase or more subsidies”, but Transport denies

The salary agreement between Governmentthe Automotive Tramway Union (UTA) and the business chambers resolved what could have been a second day of conflicts for AMBA passengers. But the Ministry of Transportation denies have approved an increase in rates or subsidies to finance it, and the companies claim that they were promised “by word” the increase in one of these two variables to guarantee the salary of bus drivers.

As the parties had agreed, Wednesday afternoon was the protagonist of a key virtual meeting to unlock the possibility of a second transport strike for today, although limited to the buses that travel through the AMBA.

Agreement between the parties: how was the salary scale for the bus drivers?

The meeting began at 5:00 p.m. and was made up of Mara Mentorodirector of Labor Regulation, representatives of the union headed by Roberto Fernandez and the private sector, such as Argentine Association of Automotive Transport Entrepreneurs (AAETA), the Passenger Motor Transport Business Chamber (CEAP), among others.

Two and a half hours later, they managed to reach an agreement that, according to the official minutes, was as follows:

  • Basic salary made up of one million one hundred and forty thousand ($1,140,000) from November 1proportional to the time worked.
  • Basic salary made up of one million one hundred and forty thousand ($1,160,000) from December 1proportional to the time worked.
  • Basic salary made up of one million one hundred and forty thousand ($1,200,000) from January 1, 2025proportional to the time worked.

In turn, the parties negotiated that the item “travel expenses and reimbursement of expenses” will be increased for each day worked in the same percentages as the basic salary established, as detailed below:

  • Starting November 1, 2024 by $6525.
  • Starting December 1, 2024 by $6640.
  • Starting January 1, 2025 by $6870.

Increase in the ticket or more subsidies?: Crossed versions between the Nation and companies

Once the document has been signed, the question is how the salary update will be financed, considering the Government’s need not to disrupt the inflationary slowdown and its refusal to increase subsidy expenditures. The answers, surprisingly, are mixed.

According to the business sector, the Ministry of Transportation facilitated the completion of the agreement guaranteeing an increase in the fare or increase in subsidies between November and Decemberto update the cost structure. “Otherwise, we would not have arranged this offer until January,” they explained.

From the Ministry of Transportation they responded bluntly: “we are not going to give them more money. They also ruled out increases in the minimum ticketlocated at $370 in the AMBA. The UTA proposed raising it to $500an increase of $130 that would be enough to finance the salary update, according to the union. However, for the Government none of this is possible: neither increases nor subsidies.

The main argument of the official management for not injecting greater fiscal spending to support the ticket has to do with the recognized cost structure for the August-October period. “There is already an established scheme, but it is the same practice as always, jointly asking for more money than they already have,” they claimed at Casa Rosada.

However, on October 18, the business chambers themselves sent Franco Mogetta, Secretary of Transportation, a note warning that “overestimated” the collection for the period and therefore must be authorized in a manner “urgenta rate increase to make up for it.

Likewise, Transport insists that the joint agreement is a matter between private parties and therefore is completely disassociated from the negotiation they have reached, because “It is between the parties”.

The business sector expects a response in November

In the business sector, they highlighted that the Government effectively “promised” them one of the two possible ways to update the cost structure and that should be reflected at the end of Novemberto pay the December parity. The same in January and February consecutively. ““This gives them time to update the costs, include the joint venture and decide how to sustain it,” they retorted.

At the same time, they warned that the agreement was reached “under the risk of having taken the commitment verbally” of Mogetta’s management, who in turn responds to the Minister of Economy Luis Caputo, since “the strike would have been very harmful for the companies due to the loss of the day.”

The warning from the business sector is clear: if there is no ticket update or subsidy, The adjustment will be by operating units.

Source: Ambito

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