This will be analyzed at the beginning of the plenary session of the Senate committees Executive-sponsored labor reformthe national senator Jorge Captainich launched a high-voltage technical-political intervention in which he questioned the project’s architecture and warned of possible dangers Constitutional defects and warned against it negative fiscal impact on the provinces.
The former governor of Chaco began his presentation by pointing out that the initiative includes the following 197 articles spread over 26 titleswith two clearly differentiated cores: On the one hand, a labor reform that changes employee rights and collective bargaining; on the other hand, a Tax package at whose fiscal costs he estimated almost 12 billion dollarscorresponds approximately two points of GDP. “They are two completely different packages in terms of quality,” he said, emphasizing that this combination has a direct impact on the distribution of resources.
Capitanich focused on the Legislative process and recalled that the national constitution establishes specific rules for the treatment of laws related to contributions and participation. I quoted the articles 52, 75 paragraph 2 and 77and claimed that the project violates the historic principle of “no taxation without representation” by pushing issues that should have been the home of MPs. “This is not a small problem: we are talking about resources that concern the Argentine provinces,” he stressed.
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In this sense, he explained that the elimination or reduction of taxes provided for in the initiative represents a significant loss for subnational jurisdictions. He listed, among other things: $2,179 million for tax cuts for commercial companies, 548 million due to changes in co-participation taxes and the effects of Work Assistance Fundwhich, as he explained, indirectly deprives the social security system of resources and limits compensatory transfers 14 provinces with pension deficits.
Former Governor’s Suggestions
Beyond the criticism, the Chaco senator expressed a number of criticisms Specific questions and alternative suggestions. He questioned the repeal of certain laws, such as: Travel statute and the Journalist statuteand was willing to discuss strategies for doing so Formalization of employment without editing rights. In this context, he suggested improving the current regulations, e.g Law on trade union co-responsibility for agricultural workersThe Private home workers law and the funding regime for Micro-SMEswhich he described as an effective tool for reducing informality.
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Capitanich supported his proposals with data from the labor market and reminded that there is a universe of Millions of potentially formalizable workersparticularly in the rural sector, in domestic work and in small production units. In his view, improving and expanding current incentives would have a far greater impact than promoting reform that, as he warned, “adjusts resources, removes resources and weakens federalism.”
The former governor’s intervention came in a Climate of strong political tensionswith overlaps between the ruling party and the opposition and questions about the functioning of the commissions. The debate will continue in extraordinary sessions in the coming days as the government seeks the necessary votes to issue a statement and advance one of its most sensitive structural reforms.
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