9 October, 2024IndustriALL affiliates in Argentina have condemned the labour reforms brought in by President Javier Milei's government, as they are extremely beneficial for employers and roll back workers’ basic rights.
In recent months, IndustriALL affiliates in Argentina have held several marches and other campaigns to protest against the new law, warning that the reforms will affect workers in all sectors of society. They expressed their regret when the reform was finally passed in June, considering it to be a step backwards for labour rights.
The new regulations reform the country’s labour law. They introduce, for instance, new severance funds to replace the system that had been established under previous legislation and negotiated through collective bargaining agreements. Employers and workers now have the possibility to replace severance payments with this new system.
The regulations state that the aim of the new system is to "address the high uncertainty and costs associated with dismissal and severance pay in the Argentine Republic", "provide greater stability in labour relations", and "promote business competitiveness and stable employment".
The fund will be available to employers and workers as a replacement for the seniority-based severance pay provided for under employment contract law, as well as any other compensation calculated based on that pay.
Argentina’s union federation CTA has condemned this reform on the grounds that, since the new system can replace any related compensation, it could be used in almost all types of dismissals, which, they believe, could lead to the reform being ruled unconstitutional.
The CTA has condemned the fact that, if the parties agree, the new system can be applied to labour relations that began before the system’s entry into force. They also do not agree that workers’ compensation should be administered through open mutual severance funds that are managed by financial institutions for profit-making purposes, as this means that workers have no guarantee in the event that the funds are liquidated for financial or any other external reasons.
Unions have criticized the regulations for reinforcing the category of “independent workers”, who are able to work with up to three other independent “collaborators” without there needing to be an employment relationship. The unions see this as a way of concealing employment relations to avoid having to pay the related compensation.
After a joint meeting of their national committees, the CTA and the CTA A confirmed that they will strengthen their ties in order to fight against the Milei government’s reforms that undermine labour rights. They strongly condemned the omnibus law and the related reforms and labour regulations, which "grant absolute power to companies and jobs without rights to workers".
Since May, IndustriALL's regional Executive Committee has been working on a trade union action plan in response to the Milei government’s continued assault on workers in Argentina. It has also issued a statement condemning the reforms put forward by the Milei government to promote the country’s deindustrialization, deregulate the economy, reduce the size of the State and its intervention, and roll back hundreds of laws that protect both individual and collective labour rights.
Says IndustriALL deputy regional secretary, Cristian Alejandro Valerio:
"All workers in Argentina must stand united against the onslaught of the Milei government and its local and international corporate sponsors. Through their union representatives, workers need to develop strategies to try to offset or limit the impact of these measures and prevent further, more deep-rooted assaults on the rights of Argentine workers."