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Claudio Moroni: 'The joint agreements that we are closing include a possible update, but no trigger clause'

2021-03-20T14:26:15.811Z


The Minister of Labor assured that the review will be in October or November. He discarded automatic formulas to update wages for inflation.


03/20/2021 11:13 AM

  • Clarín.com

  • Economy

Updated 03/20/2021 11:13 AM

In the midst of the joint discussions that the unions are closing - a few points above the inflation calculation of 29% established by the Minister of Economy, Martín Guzmán -, his work partner, Claudio Moroni, announced this Saturday that in the negotiations they would

not Trigger clauses are planned

but a possible revision

is planned

for October or November in case inflation spikes.

"

We continue to believe that the pattern (of inflation of 29%)

foreseen in the Budget is possible. We have to make the different behaviors converge. It is a clear objective of the government that wages grow in real terms," ​​said Moroni.

"Last year, in the middle of the pandemic, pocket salaries fell only 1% in the worst year in Argentine history, when GDP fell 10 points. In 2019 they had fallen six real points, in 2018 seven real points. In the midst of a pandemic, we managed to keep salaries maintained with joint negotiations, this year we are going to make them grow, "said the Minister of Labor in dialogue with the" Let's Say Everything "program on

CNN Radio

.

"How do we do it? The parity companies are mostly closing in annual terms around the inflation pattern, a few points plus 31, 32, 28 ... and what we are anticipating is, if there is any probability of error in the calculation inflation, is that

in October or November there is a possibility of review

.

Not an automatic clause, nor a trigger clause

, but the possibility of sitting down again and in case there is a deviation that the peers will have the possibility of returning to discuss salary adjustment, "Moroni emphasized.

And he criticized the trigger clauses: "All these automatic mechanisms have not worked because what they end up doing is boosting inflation.

What we have to do is to lower the indexation of the economy

. The best thing that can happen for wages to grow is that inflation goes down. That inflation-wage feedback has never worked in favor of wages ",

Within the negotiations, software companies plan to give increases of 45% to their employees outside the agreement and fintech 44%, banks (45%), the automotive sector (44%), media and telecommunications (44%), hardware and manufacturing products and insurance (44%).

That is why some economists who follow prices calculate an annual inflation between 42 and 45% and private sources consulted by Mercer, on the other hand, calculate an inflation of 47.7%, still further from the 29% expected by the Government.

Regarding these private calculations, Moroni was blunt: "I would be concerned if the survey of market expectations had ever coincided with reality. In the four years of (Mauricio) Macri's government, they announced lower inflation than they did later, the year In the past they announced higher inflation than it did later. It doesn't seem like a relevant figure to me. "

And of the 29% set by the government, he concluded: "It seems to me that it is a goal that we have to continue aiming for. We are estimating that. It is not an exact mathematical calculation, we are trying to get all social actors to converge.

In addition of the goal, the objective is that the wages grow

".

NE

Look also

Wage increases: which sectors could beat inflation this year

Controls: the Government released the list of companies that must report sales, prices and stock

Source: clarin

All business articles on 2021-03-20

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