Monday , October 25 2021

The bonus would cover 12% of lost earnings Messages immediately from


Hours have passed overheating negotiations between the national government, CGT and business people to pay private sector employees an extraordinary bonus of five thousand pesos, an amount that can barely compensate for 12 percent of what employees have lost. average pay in the last year.

The average salary of Argentina in September amounted to 26,164 pesos, according to the latest data from the Ministry of Labor. Thanks to this bonus, the average annual income of an employed person in the private sector was 340,132 pesos. This amount was achieved with an average growth parity of 25 percent.

Inflation from year to year in September amounted to 40.5 percent. This means that earnings have lost 15.5 points by that time. If wages were connected with inflation, the average annual net income would be 381,056.

This means that an Argentinian with a salary of 26 164 pesos (national average) has stopped receiving 40,924 pesos throughout the year to September. The bonus came to compensate only for 12.22 percent of what was lost.

The scale of the proposed compensation is not in line with the huge controversies that arose yesterday between trade unions and employers.

The government's commitment to trade union leadership to grant, by decree, a premium of five thousand pesos, unprofitable (to be paid midway in November and the second in January) was met with accusations by industrialists who yesterday warned that more than six for ten businessmen will not be able to afford such a payment.

The terms were expressed by the vice-president of the trade union, Daniel Funes de Rioja, who represents the business side at the table, which was created to give shape to the decree.

"Any attempt you can make is a limitation of how I pay, how I finance it, when most employment in Argentina is employment in SMEs, and access to credit is now restricted by interest rates," he said.

Funes de Rioja stressed that the main points of counterproperty in the interest are to increase the number of installments to pay off bonds to three or four and to facilitate, in the case of companies that do not have enough capital, a soft credit line to "mitigate the impact of truly unobtainable interest rates" ".

"It must be perceived with realism, with caution. You can not cover your skies with your hands." Yesterday (Tuesday) they saw the numbers Indec reported about the collapse of industrial activity, more than 11 percent of contractions.This should all be considered realistically. Here it is not against each other, but try to cooperate, but I do not think I will get consumption if there are companies that are able to pay (premium), "he said.

On account?

It has even turned out that the UIA has also requested that the decree establish that the five thousand pesos of the bonds will be the result of future increases that would result in the rejection of CGT.

From the union dome he also came "to the court" to respect the terms of the commitment taken by the Minister of Production and Labor, Dante Sica, during a meeting held last Tuesday with two CGT bosses, Hector Daer and Carlos Acuña, and the leaders UIA, Argentine Chamber of medium-sized enterprises, Chamber of Construction and Chamber of Commerce.

Towards the end of this summit, Daer announced the principle of a bond settlement agreement in two installments and introduced a mechanism to allow employees and trade unions to intervene to avoid unjustified dismissals, at least until March.

"We hope that the decree will be issued in accordance with the terms we all propose and will certainly not be a measure of strength," Daer said yesterday, reiterating that the CGT Board of Directors will meet again today to assess whether the progress achieved by the national government do not interrupt the fifth strike against the administration of Mauricio Macri.

Undefined official gestures may not convince all CGT management members.

The Secretary General of the Health Association also explained yesterday that the extraordinary payment does not apply to employees of the public sector, because, he explained, "there is a parallel conversation in the public sector between the Civil Personnel Association (UPCN) and Andrés Ibarra", deputy head of the National Cabinet.

"We are not only negotiating a bonus, but for the third time we have asked to reopen our parity" – explained Andrés Rodríguez, secretary general of UPCN.

They warn about the situation of pensioners

Defender of the Third Age, Eugenio Semino, calculated that pensioners' income had a contraction of more than 20% due to the progress of inflation.

He repeated his claim to update pensions in the retiree's basket, and according to his estimates, in August he was $ 21.137.

Correction of the retirement period in 2018. It will be 28.5%, according to the Mobility Act, against the expected 45% inflation. In turn, they lost four or five points of what was the crossroads of the old law and the new one.

Almost 60% of pensioners receive at least USD 8,600.

* Correspondent in Buenos Aires

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