Metalworkers’ collective bargaining agreement: how much will they earn in October?

Metalworkers’ collective bargaining agreement: how much will they earn in October?

September 24, 2024 – 1:27 PM

In a context of tensions between the parties and in the absence of a satisfactory agreement, metalworkers are preparing to face challenges in their salary negotiations while they await the implementation of the increases scheduled for October.

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The Metalworkers’ Union (UOM) presented to the companies a proposal to the one agreed for branch 17, which consists of a quarterly agreement of 14% with retroactive effect and a review clause. This increase will be structured as follows:

  • 4% in July
  • 4% in August
  • 3% in September
  • 3% in October

It should be recalled that after some informal conversations between the parties, the first meeting within the scope of the Ministry of Labor was held on September 3, but no favorable results were achievedOn Tuesday 10th a second meeting took place, where the Argentine Chamber of Steel insisted on its own salary adjustment scheme.

According to union sources, the business proposal consists of a 2% increase for each of the four months. This offer is in line with what the Government seeks to standardizebut it has been flatly rejected by the representatives of the UOMThe union expressed concern about a new proposal that would tie the salary discussion to the dollar, linking the increases to the devaluation of the peso ordered monthly by the national government, but focusing only on a “bottom-up” parameter.

Metalworkers’ collective bargaining agreement: how much will they earn in October?

They also pointed out that the business proposal for a 2% monthly increase would act as a ceiling and not a floor, meaning that if the official devaluation of the peso were to fall to, say, 1%, that would be the only increase in wages. If, on the other hand, the devaluation were to exceed 2%, wages would remain stagnant at that same percentage.

In response to the situation, information meetings have been scheduled at various plants to discuss the status of negotiations with workers. For their part, the companies Techint and Acindar have expressed the “impossibility” of accepting the union’s proposal, arguing that there is a “decoupling” between inflation and the exchange rate, in addition to the “threat of aggressive competition” from steel imports from China and India.

Neba Factory Industry Installed Capacity Worker Earnings Metallurgist Work Salary Salaried SME

In response to the situation, information meetings have been scheduled at various plants to discuss the status of negotiations with workers.

In response to the situation, information meetings have been scheduled at various plants to discuss the status of negotiations with workers.

Ignacio Petunchi

Given this context and the lack of agreement, the Ministry of Labour has called for a recess until next Tuesday 17 at 2:30 pm, when the talks will resume. The background to these negotiations is not encouraging, given that the previous salary adjustment was signed after seven months of arduous discussions, which included forceful measures.

On the other hand, metalworking workers have already defined their pay increase scheme, which will consist of a total of 12.54% to be paid in four parts:

  • 3.5% from July, calculated on the salaries of that month
  • 3.5% in August on salaries as of July 31
  • 2.5% from September on the basis of the previous month
  • 2.5% for October, calculated on September salaries

Regarding the retroactive payment for July, it was agreed that it would be paid together with the salaries for the first half of August.

Source: Ambito

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