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 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.
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35 comments Feed
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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
Just a thought for discussion.
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.
haha
By the way we say Argentine. ;-)
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.
It's a fine idea......if you want to put a stop to that growth anyway.
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.
when more productivity( new machines) ..then what will happen ?
@8 artillero601, good point. couldn't see any employee contributing his wages to a failing company.
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?
@23 Christina should give a call the russians and ask them how they enjoy capitalism now .....
I appreciate your comment.
. . . 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.
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.
Give lesser dividends to shareholders, discourage investment, watch your economy go down the toilet (again). It's all the same to me.
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