Argentina: the pay gap between employees and executives is reducing

The maximum pay difference between employees at the bottom of the scale and the senior executive of the same company was almost divided by half since the 1990s. In some businesses, this reduction of the wage pyramid, caused by the adoption of several successive agreements between the trade unions and the companies, led to an absurd situation : more and more managers earn less than their subalterns. The phenomenon was named "wage overrun." (Ref. 080765)
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Currently, in Argentina, a manager earns 15-20 times more than an employee at the bottom of the hierarchy in the same company. Although this gap is important, the proportion considerably decreased since the 1990s. At the time, the highest income was 20-30 higher than the lowest. This reduction of the wage pyramid is the direct result of the agreements adopted by the trade unions and the companies in the past few years. These agreements plan significant increases for “non-hierarchized” staff, i.

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