Gov't, Moyano set new minimum wage at ARG$1,840

By Carlos Burgueño

Argentina's new minimum wage is to amount to ARG$1,740 (US$439) by August, and ARG$1,840 (US$446) per month by January 2011. Around 800, 000 Argentine citizens would be benefited from the measure. The current minimum wage of AR$1,500 (US$378) per month will increase by 22.6 percent in the first month of 2011.

The announcement was officially issued Thursday by President Cristina Fernández de Kirchner. The round of negotiations was held by members of the General Labour Confederation (CGT) and Labour Ministry officials. The CTA Argentine Workers Central and business leaders were informed later Thursday.

The business sector asked the wage hike to be implemented according to the different economic situations in the provinces, including differentiated wage increases resulting from the financial and economic performance of every region. The CTA Argentine Workers Central meanwhile had asked for an increase to take the minimum wage to ARG$2,200. None of these proposals were actually considered during the negotiations. The official offer -previously discussed with the General Labour Confederation- was made by Labour Minister Carlos Tomada and later agreed upon by the attendants of the meeting. At some point of the negotiation, businessmen's offer hit ARG$1,700 per month.

The discussion over the minimum wage replicated the scheme implemented in the last five years, establishing that the salary increase is to be paid nationwide for an 8 hour workday in the formal sector. As for the balloting, 29 members voted in favour and 3 against belonging to CTA.

By implementing the new minimum wage, the government is unlikely to pay pensioners 82 percent of the minimum wage, which is currently being debated in Congress. If this pension raise comes into force by January 2011, the minimum pensions would amount to ARG$1,500. Considering that nearly 4.5 million pensioners would be benefited from the measure, the administration of Cristina Fernández de Kirchner would be forced to allocate an additional ARG$16.2 billion per year, if she doesn't eventually veto the 82 percent bill. Since the government is also forced to pay another pension raise every six months, the fiscal feasibility so as to approve the draft-bill is almost nonexistent.

Members of the Argentine Industrial Union (UIA), COPAL (Coordinator for Food and Beverage Industries), Argentine Chamber of Commerce (CAC), Medium-sized Business Organization (CAME), Chamber of Construction (CAC), Buenos Aires Stock Exchange, Argentine Rural Society (SRA), Argentine Small Farmers Association, Rural Confederations of Buenos Aires and La Pampa (CARBAP), ABA (foreign-owned private banks), ADEBA (Argentine-owned private banks), General Labour Confederation (CGT), CTA Argentine Workers Central (CTA) took part in the negotiations. Unionist Luis Barrionuevo's organization was not summoned.

Once the debate was over and the different parts had voted in favour of the official proposal submitted by Labour Minister Carlos Tomada, President Cristina Fernández de Kirchner met with Economy Minister Amado Boudou and both arrived to the Ministry of Labour's headquarters to make the official announcement. "Argentina's minimum wage is the best in Latin America," President Cristina Fernández de Kirchner said.

According to the current legislation, the minimum wages includes workers under the Employment Contract Act 20,744 of the Civil Service nationwide. The Minimum Wage Council is also entitled to set minimum and maximum unemployment compensations, carry out different reports on the labour situation of every sector in order to know the actual possibilities for workers to join the job market as well as the demand related to the occupational training, and also advise the government on employment policies.


Translated by Jimena Gibert