With regulatory changes occurring in a fStrong offensive against unionsthe government will present the project this Tuesday Labor reform which seeks a debate of the Congress in extraordinary sessions: It provides: a Reduction of the assessment basis for compensation – without including vacation or bonuses – the creation of a job assistance fund to finance layoffs -which is nourished by the contribution of 3% of companies to SIPA-, the elimination of ultraactivity, which would end the continuity of collective agreements beyond their expiry and the privileging of conventional negotiations by firms over those of activity.
According to an official document to which he had access Clarionwants to reduce the Casa Rosada initiative the labor costs of companiesmakes employment conditions more flexible, but also restricts the right to strike or “union guardianship”, the collection of contributions from union members, and provides for a significant reduction in employers’ contributions to promote real job creation.
The reform will be presented this Tuesday at the Casa Rosada in a press conference attended by some members of the Mayo Council, including the Chief of Staff, Manuel Adorni and the deregulation ministerFederico Fallenegger. In fact, it seems like a regulatory glossary that, together with the flexibility of working conditions, aims to reverse the “union model” that has been in force in Argentina for decades, as the economist from La Plata expected in November during a lecture in Spain.
According to the information in this newspaper, the reform will more precisely define the concepts that make up this Compensation for the purposes of consideration when calculating compensation for unfair dismissals. This means that social benefits such as: Vacations, bonuses, tips or prizes are not considered “non-cash wages” and are not included in the compensation calculation. The same is done with the concept of the so-called “dynamic salary“, for which the initiative allows the inclusion of an additional salary (e.g. in accordance with the employee’s “personal” merits), but which is not taken into account at the time of compensation for dismissal.
The official project is also created a new mandatory system for financing severance paymentscalled FAL, which is composed of a mandatory contribution of 3% of salaries, which serves as the basis for calculating employer contributions to the SIPA (Argentine Integrated Pension System). However, this money is later deducted from the company’s pension insurance contribution which would lead to indirect financing of the state to pay compensation.
The project also formalizes a practice that is actually common in some companies: the possibility of agreeing on the Vacation distribution for at least 7 days. Likewise, the formation of a “hour bank” This would allow companies to compensate the employee’s “overtime” with “francs” instead of paying traditional overtime.
The initiative also includes a scheme to promote the creation of formal employment through a significant reduction in employer burdens. In this sense, the benefits are valid for one year and provide for “a rate of 2% for employer contributions to SOPA, FNE and RNAF, a rate of 3% for the INSSJP (PAMI) and a rate of 3% for the Employment Assistance Fund”. In any case, it applies for the first 4 years from the start of the new employment relationship.
The initiative is now It provides for a 6% reduction in contributions paid by the employer for the operation of social services for employment that has already been registered.which would put a heavy strain on union coffers. And it provides that from the month following the promulgation of the law, employers’ contributions to the INSSJ social security subsystems, the National Employment Fund, SIPA and the family allowance system will be reduced as follows: 20.40% to 17.40% for the “Services and Trade” category. as long as sales exceed the limits of a medium-sized company; and from 18% to 15% for other private sector employers.
The project also targets the laws protecting the Trade union activityEstablishing the provisions of the “essential services or activities of transcendent importance” in the event of a strikein the spirit of Mega-Decree 70/23, the application of which has been stopped by the judiciary and is awaiting a final decision from the Supreme Court. In addition, the regulations restricts the holding of meetings and clarifies “that the employee will not receive any salary during the period of employment.” Set as “Serious violations” are the blocking or seizure of companies.
Another fundamental change in the Argentine union model is that Elimination of ultraactivity of collective agreements by providing for the expiry of binding clauses. In addition, and although it provides that “the normative clauses” may be maintained, it also authorizes the Ministry of Labor to order its suspension. On the other hand, an article included in the reform makes it easier for company unions to obtain union status.
The reform also provides for a significant change in the priority rules of collective agreements: ““An agreement of smaller scope takes precedence over another of larger scope, whether sooner or later.”contrary to the current regulations. This favors company agreements over activity agreements.
The text, meanwhile, removes the employer’s obligation to provide advance notice during the probationary period. As for sick leave, among other things, the existence of a medical committee is regulated for “cases of disagreement” between professionals and a reduction in salaries is approved “in accordance with the new conditions of the category of workers and working hours.”
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