The backdrop for negotiations in Argentina this year consists of a recession, the pressure of inflation as well as uncertainty ahead of presidential elections in October 2019. While trade unions and workers are calling for more significant pay rises, after purchasing power was significantly curtailed in 2018 due to wage increases that fell short of the 47.6% inflation rate, companies point to the budgeting difficulties they are experiences amid the recession in the country (GDP fell by 2.6% during the year, according to official statistics).With centre-right president Mauricio Macri seeking re-election, the Argentinian government will be under pressure to respond to contradictory demands, hoping not to feed the rate of inflation with hasty wage increases.
Markers for sector-level negotiations. The government has put forward a cap of 23% for wage rises. While the majority of negotiations are set to unfold between March and July, the trade union for workers at sports and civil bodies and Argentina’s federation of building managers negotiated in line with this cap, agreeing a 23% increase for 2019, which will take effect in stages and will be subject, depending on circumstances, to a review clause. Elsewhere negotiations are not unfolding with the
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