Union headquarters reject minimum wage offer

The three main labor unions in Argentina, CGT, CTA Autónoma, and CTA de los Trabajadores, rejected the latest meeting of the Salary Council, accusing the government led by President Javier Milei and business representatives of deepening the decline in the Minimum, Vital, and Mobile Salary (SMVM). The unions criticized the decision to hold the session virtually, calling it a “voiding” of the tripartite body’s function. As a result, the government will set the new minimum wage level through decree. In a joint statement, the leaderships of the three unions stated they had requested face-to-face discussions and the reactivation of various commissions within the council, including those focused on Employment, Production, and Vocational Training. They also proposed establishing a reference basic basket to link future salary negotiations with the real cost of living. None of these proposals received a response from the executive branch. On the issue of wages, the union representation presented a unified proposal: raising the minimum wage to $911,202 for July and increasing it further to $993,300 by December, based on projections from the Market Expectations Survey (REM). Following this, they demanded a new call for reviewing the amount. The unions also called for the reinstatement and updating of the "Return to Work" program, which was linked to the former Supplementary Social Salary. According to the document, its elimination affected approximately 956,000 workers, mostly women engaged in community activities such as meal services and other similar tasks. The central point of contention remained the business sector's proposal. Representatives from the UIA, CAME, AEA, and other entities offered an increase of just 1.8% on the current minimum wage of $376,000. This would mean an initial rise of nearly $6,000, followed by monthly adjustments of 1.7% until April. For the labor organizations, this approach not only keeps the minimum income far below basic needs but also exacerbates the loss of purchasing power amid declining consumption and internal market deterioration. In their statement, they noted that the SMVM is practically at half of what is needed to cover the basic basket for the poorest. Facing this situation, CGT and both CTA decided not to participate in the full meeting, considering that validating it would have meant accepting the current functioning of the council. The unions also reminded that this year they denounced to the International Labour Organization the lack of effective dialogue in Argentina. They emphasized that the ILO urged the government to guarantee a genuine consultation mechanism among workers, employers, and the state. Finally, the unions demanded that the administration change its stance and restore the full operation of the Salary Council. The conflict once again highlights the gap between union demands, business offers, and government policy on wages, especially as the minimum income continues to lag significantly behind the cost of living.