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Macri in the threshold of a major political storm over a possible veto of a labor bill

Friday, May 20th 2016 - 10:05 UTC
Full article 18 comments
 The veto of the bill is expected to be announced by Macri on Friday morning at a poultry complex which has received government support to ensure jobs. The veto of the bill is expected to be announced by Macri on Friday morning at a poultry complex which has received government support to ensure jobs.
“This law hampers jobs creation,” Marco Peña, the presidential chief of staff, said in a press conference. “This law hampers jobs creation,” Marco Peña, the presidential chief of staff, said in a press conference.
“It would be a slap in the face of workers in the current difficult jobs situation and a historic mistake of Macri if he vetoes the bill”, warned Pablo Moyano “It would be a slap in the face of workers in the current difficult jobs situation and a historic mistake of Macri if he vetoes the bill”, warned Pablo Moyano
The chair of the ruling “Let's Change” grouping in the Lower House, Nicolas Massot, said the government is not fearful of unions' industrial actions The chair of the ruling “Let's Change” grouping in the Lower House, Nicolas Massot, said the government is not fearful of unions' industrial actions

Argentine president Mauricio Macri is expected to veto a controversial labor bill which was approved early Thursday after a marathon session in the Lower House of Congress. The bill passed with 147 votes in favor, 3 votes against it and 88 abstentions includes the declaration of the employment emergency during 180 days and a double compensation in the event of layoffs, for a period of six months.

 The announcement is expected to take place Friday morning at a huge poultry complex that has had financial difficulties and has received government support to ensure thousands of jobs.

“The veto will be total,” lawmaker Pablo Tonelli anticipated, adding: “We hope unions understand out interest in discussing fundamental things such as the job creation.” Tonelli is a leading member of Macri's group ”Let's Change“

”We made many efforts to turn a senseless law into one with some sense, but we couldn’t make it. When we realized we wouldn’t change that, we decided to end this faster to move forward to a debate we are interested in, which is how to create employment,” the Congress man explained.

The Macri administration which must deal with an opposition-controlled Congress, is making efforts to cut a gaping fiscal deficit and spur investment in Argentina's battered economy.

“This law hampers jobs creation,” Marco Peña, the presidential chief of staff, said in a press conference.

Macri has pushed through painful reforms since taking the reins of Latin America's third largest economy, which is struggling with high inflation, a weak peso and lack of foreign investment. Public sector unions have opposed his moves.

The lower chamber discussed different versions of the bill, including plans to put a halt to private and public sector job cuts for six months and double redundancy payments for those workers that are laid off.

As of mid-April, Macri's government had trimmed a net 10,000 jobs from the public payroll, while the private sector has lost around 30,000 jobs and another 15,000 so-called “informal” jobs.

Opposition lawmakers have warned that up to 150,000 jobs could be lost this year.
Approval of the bill was again criticized by the Argentine Industrial Union, the country's most influential manufacturing lobby. Likewise other business organizations warned of the negative effects of the bill for new contracts.

However opposition lawmakers suggested president Macri thinks twice before vetoing the bill given the ample support in Congress, and anticipated the “workers veto”, which will turn out to the streets to protest.

In effect the Macri administration could manage with its veto a unified block of the divisive union organizations that have anticipated they are considering a full 24 hour strike.

“It would be a slap in the face of workers in the current difficult jobs situation and a historic mistake of Macri if he vetoes the bill”, warned Pablo Moyano head of one of the most powerful unions and leader of the teamsters.

But the president of the ruling “Let's Change” grouping in the Lower House, Nicolas Massot, said the government is not fearful of unions' industrial actions which could be triggered by the veto, while the president of the Senate, Federico Pinero, and close ally of Macri, underlined it was time “to stop playing politics, and begin working together, because the issue is creating jobs, more jobs”.

Categories: Economy, Politics, Argentina.

Top Comments

Disclaimer & comment rules
  • chronic

    Rgs refuse to take their medicine.

    May 20th, 2016 - 01:38 pm 0
  • ChrisR

    Moyano the younger is as stupid as his dad.

    What is it about unions that they cannot see and most certainly do not understand that only profitable companies have a future?

    It was thus in the bad old privatized BLMC days until Maggie brought in Sir Michael Edwardes (as he became) as Chairman and the Managing Director.

    His brief as he explained it to The Beloved Margaret was to make it turn a profit or close it, she agreed and backed him accordingly.

    Macri needs a few like Edwardes and balls as big as Maggies to make a go with Argentina. AND, of course good luck.

    May 20th, 2016 - 07:10 pm 0
  • Briton

    major political storm ,
    or the Perfect storm,

    it sank.

    May 20th, 2016 - 07:11 pm 0
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