A decree published on 31 March declared that Argentina’s government was banning jobs layoffs for the next 60 days. Already struggling after two straight years of recession, the economy is suffering the full force of the Covid-19 related consequences with production halted across the country, and notably since the government proactively implemented total lockdown conditions on 20 March. ‘It is absolutely essential that jobs are safeguarded for a reasonable period of time in order to preserve social peace and this is only possible by way of urgent multi-level social dialogue rather than via unilateral measures,’ the decree declared and noted the ILO’s emphasis on the importance of protecting workers and their families (c.f. article No. 11786). The 31 March decree bans job layoffs for a period of 60 days as a result of a reduction in business activity or a ‘force majeur’. Suspended employment contracts (suspensión periods during which employees do not receive their salaries) are also banned for 60 days. According to the central CGT union, if emergency measures were not to be implemented, 100,000 jobs could be lost immediately.
This decision comes after two high profile and controversial announcements. Argentinean electronics company Mirgor is considering not renewing 745 employment contracts at its Rio Grande (south) site, and negotiations are currently underway with the social partners. In addition, Italian-Argentine multinational industrial, Techint announced its intention to terminate 1,450 employment contracts, due to the total lack of business.
Do you have information to share with us?