Argentina: inflation higher than wage increases

According to the human resources specialist, Ernst & Young, a huge majority of Argentinean businesses increased wages in 2009 for workers who aren’t covered by collective agreements. In a study entitled “human resources trends” which surveyed 104 Argentinean businesses, the consultant says that the average of wage increases amounts to 13.5% while inflation in 2009 amounted to 16%. Therefore, the increases are lower than the cost-of-living increase. Employees covered by collective agreements received higher increases – 18% in average. In 2008, unions obtained a minimum 19.5% wage increase. For 2010, Ernst & Young foresees the same wage moderation as this year, with an average increase ranging between 13 and 15%. For its part, the Association of Heads of Businesses (Asociación de Dirigentes de Empresas, ADE) published a report evaluating that wage increases amounted to 16% in average between October 2008 and October 2009, while the prices of basic products increased of 15% over the same period. Therefore, inflation neutralizes the wage increases.
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ined a minimum 19.5% wage increase. For 2010, Ernst & Young foresees the same wage moderation as this year, with an average increase ranging between 13 and 15%. For its part, the Association of Heads of Businesses (Asociación de Dirigentes de Empresas, ADE) published a report evaluating that wage increases amounted to 16% in average between October 2008 and October 2009, while the prices of basic products increased of 15% over the same period. Therefore, inflation neutralizes the wage increases

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