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Metalworkers in Argentina Negotiate 2010 Wage Gains of 26.5%

17 May, 2010

Unión Obrera Metalúrgical (UOM), the national Metalworkers’ Union of Argentina, reached accord with six employers’ associations recently in wage negotiations for 2010. Some three weeks after mandatory government reconciliation stopped a scheduled 10 April strike, the UOM and four employer groups agreed to a two-phase wage increase for 2010 that totals 26.5%.

In early May, two other employer federations – the household goods association (FEDEHOGAR) and the metallurgical industry association (ADIMRA) – agreed to the salary package, which gives a 15% increase backdated to 1 April with another 10% due on 1 July 2010. The latter increase will be adjusted according to inflation, and workers should realize 11.6%.

The contracts cover 260,000 workers and will run until 31 March 2011. The four employer federations that initially agreed to terms included the small and mid-size metallurgical chamber (CAMINA), the auto and other component association (AFAC), electronic parts manufacturers (AFARTE), and the related metals industry association (CAIAMA). The UOM affiliates to the ICEM on its members in the nuclear power sector.

The union had sought a one-stage 25% adjustment, which it said would cover what was lost due to Argentina’s high inflation rate in 2009. Initially, employers offered 15% in three stages, but amended that to 20% in three phases upon the threat of a strike.

The metals pact in Argentina is expected to serve as the benchmark for bargaining in other industrial sectors. Javier Sanchez of the UOM’s Nuclear Branch credited UOM Secretary-General Antonio Caló with leading difficult negotiations in delivering just wage adjustments for metalworkers without an industrial conflict.