Argentina: Fernandez Plans To Increase Minimum Wages, Pensions

During a meeting with the General Confederation of Labor (CGT) leaders, the next Labor Minister Claudio Moroni mentioned that Argentina's President-elect Alberto Fernandez plans to increase wages and pensions when he takes office in December.

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"Promising a decree to 'level-the-field' before starting the social dialogue was what workers liked the most. So did the commitment to immediately improve the income of retirees and social plans recipients," local outlet Perfil reported.

"Increases would not be widespread but would be aimed at benefiting the most relegated sectors."

Nevertheless, further details of these measures will be announced when the new Argentine government knows how President Mauricio Macri leaves the country's public accounts.

National Institute of Statistics and Censuses (INDEC): a 4-persons family needed $ 35,647.66 to get out of poverty in October 2019. That amount was 47.1 percent higher than the equivalent figure in Oct. 2018.

To avoid misunderstandings from the business community, Fernandez's team members stressed that the 'level-the-field' decree will not increase all salaries or create a bonus for all workers.

What the new Argentinean government will set an emerging compensation mechanism to ease the burden of inflation while generating a broad social agreement on prices and wages.

The Fernandez decree would be a bridge to assist those workers who have been hit hardest by the macroeconomic crisis as well as by particularly harsh conditions in their particular sector.

Among them are those who failed to negotiate agreements in line with the evolution of inflation, which would reach a 50 percent accumulated increase at the end of 2019.​​​​​​​