Wage Agreement Will Affect 2 Million Workers

A wage agreement has been reached between unions and business chambers in Argentina, which will benefit 2 million workers with a 5.1% quarterly increase starting in January 2025.


Wage Agreement Will Affect 2 Million Workers

An agreement reached between the union space led by Armando Cavalieri and representatives of the Argentine Chamber of Commerce (CAC), the Argentine Confederation of Medium-Sized Enterprises (CAME), and the Union of Commercial Entities of Argentina (UDECA) will benefit around 2 million workers. This understanding will establish new salary increases in line with the limit imposed by the national Government for ongoing negotiations.

The agreed increase will impact the salaries of employees covered by the Collective Labor Agreement (CCT) 130/75, corresponding to a 5.1% quarterly increase to be distributed as follows: 1.7% with the salaries of January, February, and March respectively. These increases will be based on the salaries of December 2024 and will be paid as a non-remunerative and non-cumulative allowance.

It was established that the amounts under the designation "Non-Remunerative Increase - Agreement January 2025" will be considered for the calculation of additional payments such as Attendance and Seniority. In the case of workers with discontinuous, part-time, or reduced shifts, as well as those with unjustified absences, the amount to be received will be proportional to their working hours.

The parties agreed to meet in April to analyze the additional basic scales, amounts, and percentages, adjusting them if necessary according to the economic circumstances. Once approved by the Ministry of Labor, the agreement will come into effect immediately, as the stipulated increases respect the monthly 2% limit imposed by the Government to contain inflation.

The current scenario of salary negotiations is influenced by the government’s strategy to control salary increases to combat inflation. Some unions have accepted salary adjustments within these limits, while others continue in disputes seeking higher percentages. On the other hand, the Argentine Federation of Employees in Commerce and Services (FAECYS) has made progress in the collective bargaining negotiation for the first quarter of 2025, reflecting a contribution to inflation containment.