Argentina: State pays for the wages of almost 40.000 workers to stop dismissals

After an agreement signed in March between the Argentinean government and the French carmaker Peugeot-Citroen, one in three workers of the Tres de Febrero, close to Buenos Aires, receives 600 Argentinean pesos (€123) directly from the State. In return for this contribution from public funds, Peugeot-Citroën promised not to dismiss 2.000 workers. Currently, the carmaker employs 3.750 people in Argentina. The activity of workers who receive the subsidy will be suspended until the end of June. In addition to the 600 pesos of public aid, they will receive 800 pesos (€164) from the company, leading to a total of 1.400 pesos (€287) – i.e. 60% of their habitual salary. But these payments are not considered as remuneration and, therefore, the employer doesn’t pay social contributions. The rest of the workforce – 2.470 workers – won’t be affected by wage and working time cuts. The conditions of the plan were determined via negotiations between the company’s management and the Metalworkers' Union (Unión Obrera Metalúrgica).
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habitual salary. But these payments are not considered as remuneration and, therefore, the employer doesn’t pay social contributions. The rest of the workforce – 2.470 workers – won’t be affected by wage and working time cuts. The conditions of the plan were determined via negotiations between the company’s management and the Metalworkers’ Union (Unión Obrera Metalúrgica).

Prevent dismissals. This pact between the government and Peugeot-Citroën is part of the “Active Recuperation Program” (Prog

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