Tuesday, May 3rd 2011 - 08:20 UTC

Argentina supports bill requiring companies to distribute 10% of profits to workers

A day before Tuesday’s round of talks between Argentina’s organized labour (CGT) and the Industrial Union (UIA) to consider the possibility of a ‘social pact’ to help contain prices (inflation), the government expressed support for a law sponsored by unions that requires companies to distribute 10% of profits to workers.

Interior Minister Florencio Randazzo said it “was the right moment” because of the good performance of the economy

Interior Minister Florencio Randazzo said in a radio interview that he thought discussing the bill “was the right move,” and stressed that the matter should be debated in Congress. On Tuesday President Cristina Fernández de Kirchner is expected to meet with UIA and the CGT umbrella union representatives in order to re-launch the tripartite social accord.

“I think it’s the right move to discuss this matter since Argentina is going through a period of strong economic growth,” he remarked.

“The problems Argentina is facing now are different from the ones we faced in the past. The economy is in full development, it’s growing, so this matter has to be discussed rationally between the corporate world, workers and the government,” Randazzo explained.

Earlier, UIA head José Ignacio de Mendiguren assured that the profit-redistribution bill ”is a broad matter, and must be carefully discussed.”

“The CGT bill looks to legislate over the Constitution’s 14A article that rules over profit distribution. We’ve said several times that we shouldn’t be taking this article lightly since it also sets the grounds for union freedom and the right to information,” he said.

He also said he wished that Hugo Moyano, head of the organized labour movement, CGT weren’t in a position that allows him to wield so much power, although he warned that he is not afraid of him.

“I would like the person you’re supposed to be negotiating with were not in a position of so much power,” the UIA head said. “He’s one of the union leaders with the largest amount of power in these last few years. The CGT was never run by someone from a strong union,” he said.

“He is a strong leader and, like he always says, he’s in it for the win. He’s not easy to negotiate with,” De Mendiguren said.

“Moyano is very tough when it comes to negotiations, but, since I’ve known him for quite some time now, I’m sure he’s also aware that the country needs a plan for development. And in that plan, it is key that both income redistribution and investment are compatible,” he added.

The UIA and CGT representatives are scheduled to meet with President Cristina Fernández de Kirchner Tuesday.

35 comments Feed

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1 Redhoyt (#) May 03rd, 2011 - 09:09 am Report abuse
You Argies certainlt know how to attract investment to your country lol :-))
2 geo (#) May 03rd, 2011 - 09:59 am Report abuse
Argentine companies are lucrative ?
3 Rob the argentinean (#) May 03rd, 2011 - 12:31 pm Report abuse
This is nonsense, only “Queen Cristina” can think about something like it. Moyano (worker's CGT) push for it. With this law, government's Directors in private companies and the land only for Argentinean my country is going to be another Cuba or Venezuela in a very short time.
What I don't know what will happen in case the company lose money. Are the employes to give away part of their salaries?
Perhaps with laws like these some of you, living in “the tinny Falklands” want to become an Argie .... jejejejeje
4 Tim (#) May 03rd, 2011 - 03:06 pm Report abuse
3 Rob the argentinean. Unfortunately your appraisal of the situation is accurate; you're way too kind referring to her as “Queen”, I liken her more to a female dog.
5 Marcos Alejandro (#) May 03rd, 2011 - 05:08 pm Report abuse
Tim, remember you need to share 10% of your translation services business with Rob the fake argentinean :-)
6 Rhaurie-Craughwell (#) May 03rd, 2011 - 05:21 pm Report abuse
But isn't profit already distrubuted to the workers? I think they call it a “salary”.
7 ElaineB (#) May 03rd, 2011 - 05:23 pm Report abuse
@3. It is a worrying trend. Or maybe the way forward for Argentina is to become like Venezuela or Cuba. It has tried other economic and social models and failed.

Just a thought for discussion.
8 artillero601 (#) May 03rd, 2011 - 06:12 pm Report abuse
so what happens when you loose money , employees contribute their paychecks to save the company? ....I don't think so
9 Tim (#) May 03rd, 2011 - 07:14 pm Report abuse
5 Marcos Alejandro (#). No way José
10 jerry (#) May 03rd, 2011 - 07:18 pm Report abuse
I think that what Hugo Moyano really wants is for the “workers 10%” to be sent to a fund controlled by him.
11 Tim (#) May 03rd, 2011 - 09:20 pm Report abuse
10 jerry (#). Moyano is a megalomanic thug whose family's only interest is to fill their pockets with as much cash as possible at the expense of the workers. Don't cross him or his family or you will end up with your feet in concrete at the bottom of the River Plate
12 GeoffWard (#) May 03rd, 2011 - 09:42 pm Report abuse
10% of 'profits' is the current proposed Danegeld;

I guess it will be 10% of turnover next - of course, added to salaries/wages in the monthly wage packet.

Perhaps all these salaries, wages and 10%s should go straight to the union(s), and let them decide what 'overheads' to take before distributing the residue to 'the men'.

Perhaps the Government could cut out the middle-man and give the unions the companies.

Hell, if this were to happen all over Argentina we could call it Cuba II, or something!

Perhaps all that's needed is some . . . way . . . to make the union boss the President.
13 Martin_Fierro (#) May 04th, 2011 - 12:01 am Report abuse
Rob the “argentinean”, meet xbarilox, the other “argentinean”.


By the way we say Argentine. ;-)
14 Rob the argentinean (#) May 04th, 2011 - 12:47 am Report abuse
#5 Marcos Alejandro: I don't know why you call me “fake Argentine”. Lot of people use to introduce themselves using fake or no accurate information but is not my case. I am Argentine, living in Mendoza and suffering this government every single day. Others use to show they are
Argentine but forget to say they are not living in Argentina, how to know the truth by yourself about what's going on here?

Martin_Fierro #13 thanks for teaching me. As you could see living in Argentina I don't have chances improving my English vocabulary. Living in US, as you do, I see you speak a better English than me.
15 xbarilox (#) May 04th, 2011 - 12:59 am Report abuse
hey, did you hear that man? it's pucherito (aka cristina), she's saying something about the Fifty-Fifty lol ¡ESTÚPIDA! Moyano le está dando la dacharga de su vida jaja See ya!
16 Rob the argentine (#) May 04th, 2011 - 01:31 am Report abuse
Well, after I taught the correct word, I changed my screen name ... only it, not my beliefs. (Rob, former “the argentinean”)
17 WestisBest (#) May 04th, 2011 - 01:34 am Report abuse
““I think it’s the right move to discuss this matter since Argentina is going through a period of strong economic growth,” he remarked.”

It's a fine idea......if you want to put a stop to that growth anyway.
18 artillero601 (#) May 04th, 2011 - 01:37 am Report abuse
@13 @ 14 @ 15 As a senior officer on the Argentine side I command you all to get along , I don't give a shit if one is a mormon or the other one wants to give Patagonia to Chile , learn from the brits , they don't fight in public and they agree in all the shit they write in this forum...... Even though some of us don't live in Argentina, we still have passion for our country (la patria duele y se extraña)
19 xbarilox (#) May 04th, 2011 - 03:03 am Report abuse
@ 18 “LA PATRIA DUELE YE EXTRAÑA” así es, but we're not fighting, we don't have to agree with each other. Do you really think that brits agree in all they say? I don't think they're idiots, only idiots will agree in every thing they do or say just because they are from the same country, I have read many comments posted by brits in different forums and I read that some brits want to give the islands to our country for example, so it's not true that brits agree in all they write, perhaps in this forum there are only brits who have the same views. I don't want to give the Patagonia to Chile, you should live in Argentina to understand what I mean artillero601, sorry, but this is true, living in the USA is different than living here, specially in Cap Fed. Cuando Cap. Fed. sea una gran La Salada todos estos pelot*dos que opinan sobre lo bien que se vive con Cristina, no van a volver, van a seguir donde están. Es como que rompen las pelotas al pedo, mientras cobran en dólares. No confundamos a esta bastarda de Cristina con la Argentina, una cosa es Cristina de Kirchner y otra Argentina, cuando Cristina se vaya todavía vamos a tener a Argentina (o lo que quede de ella) As for the islands, I only said what is vox populi. This is not about feeling, many people in this country will use the veterans to acuse those who have a different point of view of being traitors, that's what they do, I don't believe that's correct. The same people who gave their support to Galtieri are now crying and calling other people traitors lol they gave the support to Galtieri when he sent 18 year old boys to war. But we must use our heads not our hearts, sentimentalism is useless. This government is using people because it knows that unfortunately in our country people love to feel like victims, they're poor because the rich stole their money, they're poor because the Empire stole their money, they're poor because the Brits are pirates, it's like we're always bitching about the same sh*t.
20 geo (#) May 04th, 2011 - 09:53 am Report abuse
You're poor becouse your country abused by some Intelligent Services..
You're poor becouse your country doen't have qualified ethnic groups..
You're poor becouse your country is still rawmaterial country..
You' re poor becouse your country has unbalanced socio-economico..
You're poor becouse your country isn't ruled by real Argentines.
21 Bubba (#) May 04th, 2011 - 10:15 am Report abuse
Does this mean the unions will share in the losses also? Real companies have profit sharing, without government influence or meddling from unions..
22 yul (#) May 04th, 2011 - 10:29 am Report abuse
when the companies failured..then what will happen ?
when more productivity( new machines) ..then what will happen ?
23 lsolde (#) May 04th, 2011 - 10:36 am Report abuse
Won't work, it's a form of communism & we all know how that ended up.
@8 artillero601, good point. couldn't see any employee contributing his wages to a failing company.
24 GeoffWard (#) May 04th, 2011 - 11:40 am Report abuse
If the Government is to move to progressively nationalise the companies . . .
and if the Government is to progressively pay the company workers . . .

why not just keep it private, tax the company . . .
and give money to the *people* out of taxes!

Or is the money just meant for UNIONS and their members?
25 artillero601 (#) May 04th, 2011 - 01:13 pm Report abuse
@19 I agree BUT the country is the way it is because the division among ourselves. The day that we all stick together for the better of the country (and not ourselves) is the day that we will grow as a Nation meanwhile CFK wants to embrace Cuba and Venezuela ....therefore I read that she wants to make Argentina a banana republic.....

@23 Christina should give a call the russians and ask them how they enjoy capitalism now .....
26 xbarilox (#) May 04th, 2011 - 05:31 pm Report abuse
300,000 Pesos to Moyano in December 2010, 170,000 in January, and now 350,000 in May, 4 more years with these people in the government and I hope those Argentines living in the USA will come back and help, or at least you will transfer some money from the USA to Argentina guys lol Millions to Moyano, millions to Hebe and Estela, millions to the families of the so called “Idealistic Youngsters” (aka throwing bombs to people even it is in schools is fun), millions to Gioja, millions to Urtubey, Jaime, the list never ends. People don't care anymore, corruption is part of our lives and it's accepted, recognized and guaranteed, :) oh, and necessary, that if you want to pursue a carreer in politics in our country, be corrupt. All countries suffer from corruption, but at least many of them fight it, here we don't fight corruption anymore, that's leading us to failure, thank you.
27 artillero601 (#) May 04th, 2011 - 05:57 pm Report abuse
@ 26 .. and you want me to go back to that ??? hell no !!!!!!!!!
28 GeoffWard (#) May 04th, 2011 - 06:41 pm Report abuse
Xbox 26
I appreciate your comment.
29 artillero601 (#) May 04th, 2011 - 06:55 pm Report abuse
@28 XBox26 Is that a new Xbox version? ...lol!
30 GeoffWard (#) May 04th, 2011 - 09:36 pm Report abuse
31 I (#) May 05th, 2011 - 08:42 am Report abuse
I for one rather see the 10% in the hands of the working class, where it will go back into the economy to create jobs, rather then in the saving account collecting interest or building yet another mine to export Argentine resources and jobs to EU or USA. it's going to be a big problem but we have to start somewhere, Gaddafy tryed this in Libya back in 2009 and ended up being attacked by France, UK, USA, Canada and even Italy. mathaba.net/news/?x=626443
32 GeoffWard (#) May 05th, 2011 - 09:49 am Report abuse
. . . presumably because Gaddaffi started state- extorting money from French, UK, Canadian, and even Italian companies working in Libya in 2009.
Action and Reaction?

Perhaps it also had something to do with his use of tanks, warplanes and heavy weaponry on the Libyan people.
33 WestisBest (#) May 05th, 2011 - 10:36 am Report abuse
“I for one rather see the 10% in the hands of the working class, where it will go back into the economy to create jobs”

Just as well for Argentina that you're not running the country I(diot) if that's what you think would happen. For your information investment is good for business and good for the economy, this will discourage investment, cretin. Or are you suggesting that the workers will be 'investing' by buying into companies with the companies own money...and that this is a good thing? fool.
34 Monty69 (#) May 05th, 2011 - 07:52 pm Report abuse
I think it's a cracking idea. Do it, proceed forthwith.
Give lesser dividends to shareholders, discourage investment, watch your economy go down the toilet (again). It's all the same to me.
35 WestisBest (#) May 06th, 2011 - 07:28 pm Report abuse
Actually I've changed my mind, go for it Argentina. We'll watch how this changes your economy for the better with great interest. Fill yer boots!

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