Companies are experiencing a strong crisis in the industrial sector. 92% of the union entities declared that the use of installed capacity remains the same or has improved since the beginning of Milei’s mandate.
Between November 2023 and August 2024, 38,532 jobs were lost in the industrial sector. And, if mining and construction are included, the loss amounts to 126,050, according to data from the Superintendency of Labor Risks (SRT). In turn, 879 companies in the manufacturing industry disappeared. 92% of the union entities declared that the use of installed capacity remains the same or has improved since the beginning of Milei’s mandate.
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The number of signatures reaches 2,333 if we incorporate “Mining” and “Construction”. The data comes from what was included in a report by the Confederation of Industrial Unions of the Argentine Republic (CSIRA) and the Center for Political Economy (CEPA), which includes 1,660,000 workers. It indicates that 69.2% of unions consider that sales have deteriorated in the last quarter and only 3.8% consider that they improved.
The report shows that for 90% of union representatives in the industrial sector, the situation of the activity has worsened so far this year. 70% report a drop in sales and only 3.8% affirm that they improved.
Production follows the same decreasing behavior: almost 80% of union representatives indicate that there was a drop in activity and more than 60% report that this is reflected in fewer working hours. For 92%, the use of installed capacity in factories remains bad or worsened under the current Government.
The panorama has a full impact on the situation of workers: in 60% of the unions that CSIRA brings together there were layoffs in the last quarter and a third report problems on the part of companies in meeting salary payments.
Salaries, parity and overtime
82% of the unions surveyed indicate that there was a cut in overtime in their sector and 72% speak of suspensions, licenses and early vacations for a percentage of workers.
Regarding the joint ventures, 80% of the referents indicate that the increases are negotiated but are approved and paid late.
Looking ahead to the next quarter, only 7% of industrial union representatives expect the outlook to improve; For the remaining 93% the situation will be worse or the same as up to now.
Regarding the prospects from the approval of the Base Law, 70% say that the impact on the industrial sector will be negative.
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A drop in production
Production follows the behavior of sales and 76% indicate a reduction in production in the same periodwhich results in fewer production shifts: 62.9% reported a reduction in them in the last quarter.
Only 3.4% of unions consider that the working conditions of Collective Labor Agreements have improved. 34.5% consider that they have worsened. 60.7% report layoffs compared to the previous quarter. This is aggravated by the reduction of overtime, the implementation of suspensions, voluntary retirements and early retirements.
Source: Ambito
