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Argentina offers state workers 1.7% monthly raise, union rejects deal
🇦🇷 Argentina /Economy & Trade

Argentina offers state workers 1.7% monthly raise, union rejects deal

From La Nación · () Spanish

Translated from Spanish, summarized and contextualized by DistantNews.

At a glance

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  • The Argentine government proposed a monthly salary increase of 1.7% for state employees from September to December, plus a one-time non-remunerative bonus of $80,000.
  • The proposal was accepted by the majority union UPCN but rejected by ATE, which argues the increase is below inflation and the bonus is insufficient.
  • ATE claims public sector workers have lost over 44% of their purchasing power since President Milei took office, with many workers accumulating debt.

Argentina's government has offered state employees a salary increase averaging 1.7% per month for the period of September to December, along with a one-time non-remunerative payment of $80,000. This proposal was accepted by UPCN, the largest public administration union, but rejected by ATE. ATE's general secretary, Rodolfo Aguiar, criticized the offer as unacceptable, stating that the increases are below inflation and the bonus is insignificant. He argued that the offer does not even cover basic expenses like a tank of gasoline and vowed to take "forceful measures."

Milei is closer to achieving zero negotiation than zero inflation. With UPCN's help, the president is fulfilling what he said and continues to cut public sector salaries. After the signing, they should be celebrating together.

— Rodolfo AguiarATE National Secretary General, criticizing the government's salary offer.

The proposed staggered increase includes 1.9% in September, 1.8% in October, 1.6% in November, and 1.5% in December, with the $80,000 bonus in the final month. This offer contrasts with President Javier Milei's earlier projections of inflation falling below 1% from August onward. Milei has previously stated that the decline in purchasing power and state worker salaries is a deliberate outcome of his economic model aimed at reducing the size of the state.

For us, this negotiation is unacceptable. It's again about increases below inflation and one-time bonuses in December that are useless. It's a mockery. It's not even enough to fill a tank of gasoline. And if we imagine it at the end of the year, it won't even be enough for an alfajor. We will take forceful measures.

— Rodolfo AguiarATE National Secretary General, further elaborating on the rejection of the salary offer.

According to ATE's calculations, public sector workers have experienced a loss of over 44% in purchasing power since President Milei assumed office. A survey conducted by ATE across various government bodies and ministries revealed that 87% of public employees have existing debts, with 73% owing multiple creditors. Of those in debt, 40% use the borrowed money for medical emergencies, education, or rent, while 37% use it to cover other debts, food, and clothing.

The salary of the public sector falls and it is a sought-after consequence of this model.

— Javier MileiPresident of Argentina, admitting that the decline in public sector salaries is an intended outcome of his economic policy.
DistantNews Editorial

Originally published by La Nación in Spanish. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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