Most of them SME entrepreneurs does not believe that the government-sponsored labor reform law Javier Milei in Congress can Create jobs or revive the economybut at least they are celebrating the abolition of fines and interest paid for labor violations to compensate dismissed workers. Unanimously, Industrial entrepreneurs are calling for a reactivation of consumption.
“Here there is no reduction in taxes or the workload, nor is there a reactivation of consumption, nor is there a policy of reducing interest rates to obtain financing,” he said iProfessional Maximiliano PisettaVice President of the National SME Movement (Monapy).
“Consumption has been completely eliminated. I have a catering service company for parties, but if this continues, no one will use my services,” said Pisetta, one of the most listened to SME businessmen in Chaco.
The President of Monapy, Alejandro Bestani, pointed out iProfessional The “Fundamentally, the law seeks to mitigate and clarify some gray areas, some very necessary things, but we do not see cost reductions that justify the creation of new jobs.”In addition, he added: “There are doubts about the employment support fund for redundancies. We have to see whether it works or not. We see no particular appeal in sugarcoating it or pursuing a massive employment policy.”
“No one understands exactly what you want to do.said Bestani, owner of Inca, a canning company based in Saint Raphael, Mendoza.
The president, for his part General Business Confederation (Cgera), Marcelo Fernandezhe agreed iProfessional that “as a first step we must reactivate the internal market and monitor imports so that they do not replace national production but complement it.”
The demands of medium-sized entrepreneurs go beyond labor reform
He also demanded that “the courier operation be regulated and recorded, which …” harm industry and commerce. We do not believe that the Labor Reform Act creates consumption or employment through the law itself.” There are no plans to create jobs, which means a lot for a businessman of Peronist origins.
“To reduce costs we need to address the problem of absenteeism, which averages 14%, which is really damaging.” The ART rate is more than 10% on average and the ART is not responsible“, said the manager.
“The national provincial and municipal taxes must be changed and the work must be finished, and unregistered companies that not only represent unfair competition but also affect the collection and cause those of us who pay to have to pay high taxes because there are 40% who do not pay,” said Marcelo Fernández, interviewed by iProfessional.
“If it continues like this, there will be more closures and job losses and the things that are being done will be of no use: first we must promote consumption and the internal market, so that later all the measures that must be taken for SMEs are useful,” said Fernández.
The independent textile entrepreneur Camilo Alanwhich has its factory and shop in Villa Crespo, was blunt: “This labor law will not create jobs. If there is no reactivation, it will not create jobs. There are more and more closures of industries and businesses and it will get worse.”
But he saved one point from the labor reform: “The only thing I save is to stop the trials against the Caranchos with the lawsuits and the lawyers who…” They confiscate their accounts and melt them down.. The only thing I want from labor reform is the abolition of interest and fines.”
However, the company was pessimistic about the future of its value chain. “AND As for our future, it is very difficult in the textile and footwear sector due to the volume of imported goods and smuggling. We’re totally melting“, he assured.
In fact, the only thing that saves some SMEs from the work modernization project is the changes in the system of fines and interest related to compensation.
Compensation, abolition of fines and other changes to labor reform
The elimination of fines due to lack of registration is determined: the fines of Laws 24,013 and 25,323 punished unreported or poorly reported employment (so-called “illicit work”). Previously, these fines doubled or significantly increased the amount of final compensation.
It also creates the Labor Assistance Fund (FAL) which replaces that traditional compensation from a fund consisting of monthly contributions amounting to 3% of salary the employer to cover future redundancies, thereby avoiding paying a single amount upon termination.
The aim of the reform is reduction “experimental industry” Introducing more predictable update rules and eliminating surcharges, which led to an exponential increase in judicial debt.
On his part Raul Zylbersteinfrom Cgera and owner of a tannery, ruled out that the new project would create new jobs. “I don’t believe that a labor law creates employment, no matter how good it is, but it can be a factor of competitiveness on the one hand and well-being on the other.”. To be a good equalizer, it has to segment companies, because companies are very different, but not for our labor law. “An industry is not the same as a commission business, not even one with intensive capital and not one with intensive labor,” said the tanner.
“I don’t see a reduction in costs or taxes for an SME. If you add the payment of a severance fund, it relieves the cash flow to save for a future dismissal, but it does not act as insurance, so the compensation does not change, you just have to advance a part and it will be a source of new litigation,” explained the Cgera businessman.
“I don’t see any advantages as many cost reductions have to do with compensation“It is a long-term expense which, if incurred, will cause serious harm to an SME, but it is not an everyday expense and I strongly doubt that the judges will confirm this in their rulings as they evade the law that imposed the fines,” he added.
For his part, the President of the Chamber of Commerce of San Martín, Juan Ciollihe assured iProfessional The “This labor law will in no way create jobs. What creates jobs is a dynamic internal market that requires both active and passive workers, have a salary that allows them to consume. The internal market is the salary, so it is necessary to improve the purchasing power of the salary.”
“Labour reform will impact large companies, not SMEs”
The businessman became forceful as he explained: “What we SMEs need is to discuss it.” Segmentation of public policy, both labor law and tax and financial. There is no inequality worse than enacting equality for unequals. All laws are more equal than ever Techint, Arcor, Aluar, which are suitable for a micro, small or medium business“.
Ciolli also added: “I don’t think it will have a positive impact on SMEs, but it will have a positive impact on large companies. There are issues that should be discussed, but not with this government that just wants to take away rights.” He specified that “there are aspects that can be seen in the agreement between SMEs and workers, how we resolve it: this is the case of the process industry, we must look for mechanisms that do not harm either workers or SMEs.” “Large companies have planned for it on their balance sheets, which is impossible to achieve in MSMEs.”
The Chaco for its part Maximiliano Pisetta He was very categorical when he stated: “The employment lawyer has already said it.” Julian of Diego that this labor reform will not create work, but a kind of work that comes from the kidneys of those who launched the project.”
In dialogue with iProfessionalPisetta remarked: ““Of course, we also believe it will not generate work, which is what it was designed to do.”. And he added: “Argentina needs to create between 8 and 10 million jobs in the next 6 to 7 years, which are now in the informal sector.” They need the creation of SMEs. “There are 530,000 of us and we need at least 300,000 more SMEs to deliver a jobs shock.”
Pisetta pointed this out on behalf of the Monapy that “in the context we have, where there is no financing and the interest rates are very high, you have to be crazy to take out a loan.” In addition, he pointed out that “the social contributions, the tax burdens, now they charge us the labor assistance fund, even if it is 3 or 6%, they have not understood anything.” Because he also assured that “if, on the one hand, 3% flows into the FAL fund and, on the other hand They reduce 3% of Anses pensions, we are in the same situation“.
The Chaco businessman pointed out: “Obviously we have a lot of reservations and I hope we can combat these problems. To create jobs, companies must be created… Go to the United States and ask them to start companies without financing.
He also pointed out that policies are being created in these countries “so that there is consumption and that not everything is imported: you cannot buy abroad what we produce in the country. Just in case, Pisetta clarified: ““We are not Kirchnerists and we don’t want this policy either.” and suggested creating a commercial space that would be an alternative for the future.
About The Author
