The day after Javier Milei will sign the project Labor reform In the document submitted to Congress, the administration outlined some of the most questioned aspects of the initiative, such as the changes in the Vacation, overtime and compensation. The person responsible for convincing that the changes would not be harmful to workers was the Minister for Deregulation, Federico Fallenegger.
The official, a key player in the drafting of the project, invoked the idea “mutual agreement” between employer and employee both in terms of vacation and overtime.
“The current law requires you to take vacation during a certain period of time. Ask.” In some ways, this flexibility is what young people want.. They decide by mutual agreement. The law stipulates from October to April and at least seven days, but as long as it is done by mutual agreement, it can be agreed upon, “Fallenegger explained in an interview with Radio Mitre.
In a similar vein, the minister referred to overtime and mentioned the idea of the “hour bank” that an employee can have. “Overtime never endsremains exactly the same, but the hour bank is also introduced. “If we stay for two more hours, the employer can say we’ll do another two hours and not show up on Friday morning,” he said.
And he added: “Just as we talk about making vacation more flexible, this is also about employers and employees being able to create more flexible arrangements.”
The other key aspect of the reform is compensation. Fallenegger referred to the current system and explained the objectives of the new official project. “The compensation payment is one salary per year of work, which is one of the most generous regulations there is,” he said of the current system, continuing: “That is not a problem. The problem is that in conflicts or litigation, a judge can say that it is 20 (salaries). It creates uncertainty about dismissal.”
In this regard, he pointed out that the new initiative introduces changes “aimed at reducing this uncertainty”. “We tried to typify the calculation well to avoid those gray areas that give room for litigation. One of the issues of interest, for example, if this happened 15 years ago, brings it to today’s money. The law establishes this point and the employer who enters into this employment relationship does not face this uncertainty,” he said.
Fallenegger also referred to the Labor Assistance Fund (FAL) This, according to him, will serve to ensure that employers face “emergencies and layoffs.”
“The government decides to allocate part of this tax reduction that we can achieve (with the budget adjustment and budget balance) to the labor market. This will mean a 3% reduction in labor taxes,” said the minister, adding: “The employer deposits it as prior savings in a support fund to deal with contingencies. It is money that the state deposits because a part is not taken and remains with the employer to deal with these contingencies, such as layoffs.”
In a counterattack to the labor reform project that the government presented to Congress on Thursday, the CGT confirmed the holding of a mobilization next Thursday, the 18th, which will take place in front of the Casa Rosada in Plaza de Mayo.
As he knew ClarionFrom the CGT they announced that they will target three fronts to try to stop the reform pushed by the government: parliament, the judiciary and the street.
“Next December 18 at 3 p.m. we will demonstrate in Plaza de Mayo to reject this labor reform project,” said CGT leader, insurance union member Jorge Sola, at a press conference.
Although the ruling party insists that it is ready to negotiate with the CGT to adapt the project, the union leaders remain in a position of rejection for now (especially publicly) and announced the mobilization for Thursday.
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