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Bus strike: the subsidy crisis continues and the UTA warns that it may cut the service

2024-04-04T23:07:16.083Z

Highlights: Bus strike: the subsidy crisis continues and the UTA warns that it may cut the service. The companies assure that the Government does not recognize an increase in the basic salary for drivers within the cost calculation. The difference of $250,000 for each driver, multiplied by 50,000 workers, results in about $12.5 billion that the operators should receive. "Between rates and subsidies we receive $650 per trip," said private sector sources. The Government's response: "The Ministry of Transportation has no responsibility for not being part of the agreement "


The companies assure that the Government does not recognize an increase in the basic salary for drivers within the cost calculation. The union warned that if they do not charge what was agreed, there will be problems starting Monday, April 8.


The crisis of the automobile public transportation system (buses) seems to have no end.

Due to the

recalculation in the payment of subsidies

, the companies of the Buenos Aires Metropolitan Area (AMBA) assure that

they do not have enough money

to pay the promised salary increases, and the union of the Automotive Tram Union (UTA) warned that if they do not collect completely,

they can go on a bus strike starting Monday, April 8.

Specifically, the general secretary of the UTA, Roberto Fernández, and the representatives of the companies sent letters this Thursday to the Minister of Economy, Luis Caputo, and the Secretary of Transportation, Franco Mogetta, to indicate that the Government

would not be granting Correct

tariff compensations that cover salaries and bonuses agreed on in equal terms.

What is happening?👇👇


âś…on 2/2/2024 the salaries for January and February 2024 were agreed upon


âś…on the 4th business day of each month salaries must be paid. On April 4/business day (4/8/24) March salary must be paid.


✅The joint agreement was signed for the months of January and February 2024, but at… pic.twitter.com/nzxbM8XHZf

— aaeta (@aaeta_arg) April 4, 2024

"Between rates and subsidies

we receive $650 per trip

," said private sector sources. The Argentine Association of Automotive Transport Entrepreneurs (AAETA), where the Metropol group weighs, noted that $737,000 is recognized in the official cost calculation for each driver as basic, but the agreement with the UTA established $987,000.

The difference of $250,000 for each driver, multiplied by 50,000 workers, results in about $12.5 billion that the operators should receive.

The Government's response

The Secretary of Transportation of the Nation came to the crossroads of these statements by the transporters and in a statement stated that "it is up to date with the payment of subsidies to the automotive transport companies of the AMBA. And it will continue to comply with the payment of the planned and corresponding funds for companies, which has been carried out in a timely manner. It is the obligation, on the part of companies, to comply with the salary payment to their employees.

"Transport also detaches itself from the salary issue raised by the companies. "Regarding the claim made by the UTA about the sums that would have been agreed upon jointly with the employers, the Ministry of Transportation

has no responsibility for not being part of the agreement "

Source: clarin

All business articles on 2024-04-04

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