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Joint: the Government advises that this year the ceiling is 30% and without a trigger clause

2021-01-29T02:43:38.103Z

The Casa Rosada wants the increases to be in line with the 29% inflation projected by the Economy. They ratified that there will be no massive $ 10,000 bonds (IFE) or ATP program.



01/28/2021 20:10

  • Clarín.com

  • Economy

Updated 01/28/2021 20:10

The Government wants that this year the

parity companies have a ceiling of 30%

, without a trigger clause, so that salaries are in line with the inflation that the Economy projects at 29% by 2021. And that at most salaries exceed 1 or 2 points the rise in prices.

No more.

He also ratified that official aid will be limited to critical sectors affected by the pandemic and that

there will be, as last year, neither massive bonds of $ 10,000 (IFE)

nor ATP program (payment of a part of the salaries of the private sector) .

Following these objectives, the Alberto Fernández administration seeks to put together a general agreement between the CGT and the business centers to discourage the expectations that this year's joint ventures will recover the salary losses of the last 3 years and that salary improvement is transferred to costs entrepreneurs and then prices.

Miguel Acevedo (UIA) and Héctor Daer (CGT).

The Government seeks a price and wage pact between unions and companies.

The UIA-CGT agreement on suspensions due to the pandemic, with the reduced payment of up to 25% of salaries, is a precedent of the type of social agreement it seeks.

"We do not want the oil workers, or Baradel (for the teachers) or Moyano (for the truckers) to set the wage pattern for this year," admit the officials.

According to the latest data (October 2020) from the Ministry of Labor, the real wages of registered private sector workers who kept their jobs fell by 2.3% in 12 months and accumulated a fall of 13% compared to October 2017. In the public sector, the wage loss is higher.

Following this objective, the Economy advances with various initiatives.

After the agreements for the prices of beef and corn, it now points to the chains of wheat and sunflower.

Food prices are the ones that most affect the measurement of inflation and the values ​​of the basic baskets of indigence and poverty.

At the Economic Cabinet meeting last Wednesday, the Minister of Economy, Martin Guzman, said that the “central pillar to attack the inflationary problem is the comprehensive macroeconomic policy scheme, which includes fiscal, monetary and exchange rate policies.

To make the objectives defined in the Budget 2021 law come true, the State has a role in coordinating management in order to align expectations with the inflationary objectives to which it is aimed ”.

And he advanced one more box: "

The coordinated price and wage policies that are sought to be established during 2021 fulfill this complementary role of the macroeconomic policy scheme,

" said Guzmán, in a message addressed to the CGT and the business centers.

For now, the CGERA (Business Confederation of the Argentine Republic, akin to the ruling party and which brings together SMEs), immediately supported the official “initiative” that it described as a “social pact” “so that the private sector, the Government and the unions establish price and wage agreements to align inflation expectations ”.

Although Economía projected that this year inflation would not exceed 29%, private estimates are much higher.

At the end of last December, in the REM (Survey of Market Expectations) published by the Central Bank, they projected that retail inflation for December 2021 will be at 49.8%.

Guzmán's "social pact" seeks to narrow that gap and for private consultants to revise their inflationary projections month by month. 

At the Economic Cabinet meeting on Wednesday it was ratified that this year there will be neither IFE, for the 3 $ 10.00 bonds, nor ATP, for which the State in 2020 paid a part of the private salaries of the private sector, for the fiscal cost of those programs.

Martín Guzmán, Minister of Economy.

Photo Juano Tesone.

It was defined that the aid will be concentrated in the REPRO II program, by which - upon compliance with the requirements and conditions of the program -

a monthly sum of up to $ 9,000

is granted 

to workers of companies that are going through a critical situation

due to the pandemic adhering to the Program.

In addition, there are special aids, such as the exemption until March 31 from the payment of employer contributions to the Health sector.

Look also

After arduous negotiation, the Commerce union agreed to a 21% increase

Historical change to control the price of meat: the half beef will stop reaching the butchers

Source: clarin

All business articles on 2021-01-29

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