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23 May, 2011
In line with a 2001 agreement with US-based rubber multination Firestone, the ICEM-affiliated SUTNA announced on 9 May that 980 members at Firestone received a profit share bonus of 4,000 Argentine pesos (686 euros). It is the fourth time workers have received this kind of bonus since 2001.
SUTNA General Secretary Pedro Wasiejko is now pushing for similar profit sharing to be extended to all workers in Argentina and enshrined in the country’s labour law. The agreement was reached between workers and management during a difficult economic period for the tyre and automobile sectors in Argentina. Workers then agreed to take a reduction in wages in line with the downturn in company profits, to ensure the company would recover. Now the tyre and auto sectors are performing well, workers are rewarded with the substantial bonus.
Pedro Wasiejko
According to the agreement, workers receive the bonus payment when annual profits reach more than 6%. Workers receive one third of the amount above the 6% mark, whatever that figure is equal to.
See the video of the press conference where the announcement was made here.
Wasiejko, also General Secretary of Industrial Workers’ Federation FETIA, and Hugo Yasky, General Secretary of the CTA national centre, argue that the Bill currently passing through the consultation phase within Congress ought to formalise the profit sharing bonus, and for those payments not to be taxed. This would encourage investment on the local level, and also from multinationals.