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Javier Milei assured that the Government will not define the minimum wage by decree

“You won’t see me setting any price”. Under that premise, the president Javier Milei rejected the possibility of defining by decree an increase in Minimum salary, vital and movilafter the failure of the meeting between unions and businessmen, in which there was no agreement or mediation by the Government. “Partnerships are free”he confirmed.

The President expressed himself like this in an extensive interview with radio Rivadavia in which he also ruled out convening the national teaching parity, in the midst of the conflict with the governors after the elimination of the incentive given to teachers. “It is the responsibility of the provinces,” he insisted.

Yesterday the meeting between business and union leaders was frustrated in which the increase in the minimum wage, which is $156,000, was to be defined. The unions expected an increase of 85% to take it to $288,600. But they assured that the employers did not make any proposal and that the Government also did nothing to bring positions closer. On the contrary, they claim that he positioned himself on the side of the companies.

The purpose of the meeting of the Salary Council was to determine the new scheme starting in March, in the first head-to-head in the management of President Javier Milei.

The surprise was the way in which the conversation was carried out, since the Ministry of Labor led by Omar Yasín enabled two different Zoom rooms, one for dialogue with businessmen and the other with union members.

Thus, the negotiation was not such at any time, since each party expressed their opinions separately, prior to the plenary meeting, which was decisive to set the increase.

Given the unions’ request, according to sector sources, the UIA rejected it, while no proposal for an increase was raised by the business chambers, which reflects the toughness of the employers’ sector in the negotiations.

From the previous one it was known that the CGT was going to ask for an increase of around 85%, with the argument of the salary loss suffered by the effects of inflation in December and January, in both cases with data greater than 20 percentage points. .

That number, in fact, ended up being $288,600. That proposal was raised by the labor union, but quickly discarded, which was to be expected, given that the Salary Council is made up of 16 union members and 16 business representatives.

After that, Yasín intervened and called to vote again in 10 minutes, an instance in which the increase proposed by the CGT was once again discarded. From there, without agreement again, the Government sought to appeal to the figure of the award to set the new Minimum Wage, but the meeting ended and the decision would be made by Yasín.

There was speculation, at one point in the meeting, with an increase of just 17%.

The decision to establish the minimum wage occurs periodically and has a direct impact on different sectors of the economy, both the highest and lowest earners.

In the case of Profits, it has an impact because it modifies the salary floor from which workers are covered by the payment of the tax. But it also hits directly into social plans: Empower Work, the main state assistance program, represents half the Minimum Wage.

With the salary floor still at $156,000, awaiting an update, the Empower Work remains at $78,000 per month, while the floor for those who pay Earnings is located at $2,340,000.

These amounts will be renewed once the Government decides to unilaterally update the new figures.

The CGT statement

“The Government made the meeting of the Minimum, Living and Mobile Wage fail,” is the beginning of the statement that the CGT signed as soon as the meeting ended, in which it had proposed raising the SMVM 85% higher than its current value.

“Breaking a long tradition of tripartite social dialogue and collective agreements within the Wage Council in our country, the government prevented the normal development of the meeting with the sole objective of boycotting any possibility of agreement,” they maintain in the text.

“The General Confederation of Labor has been requesting a Council meeting since December to establish a new Minimum Wage and a new value of the unemployment benefit,” they add from the labor union.

And they warn that “in times of very high inflation and with intolerable and unjustifiable increases in prices, establishing a social floor is necessary and cannot be postponed. As it is public knowledge, the CGT proposal is to establish an 85% increase on the last amount from the February 1, setting a base of $288,600. This proposal had the agreement of the three labor confederations and the rejection of the business counterpart.”

“The Government prevented by all possible means the meeting from taking place normally, the businessmen led by the Argentine Industrial Union were complacent with that strategy and did not formulate any proposal,” said the union.

And he complained that “the same businessmen who in the ILO defend social dialogue and collective consensus as a fundamental tool for the economic and social development of the country, today erased with their actions what they proclaim with words in international forums.”

“The General Confederation of Labor ratifies the importance of establishing a new value of the Minimum Living and Mobile Wage, absolutely degraded by the intolerable inflationary process,” said the CGT.

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