Government Initiative Sparks Outrage and Labor Action

A newly published resolution in the Official Gazette has ignited a firestorm of controversy. The National Government has declared that officials overseeing departments where personnel have been considerably reduced will receive additional remuneration units. In essence, those who implement the most substantial staff cuts will be rewarded with a supplementary salary increase. This decision has been met with fierce opposition from the State Workers Association (ATE),a prominent public administration union,leading to a planned strike and mobilization.

The Mechanics of the “Budget Savings” Reward System

The government defends the initiative, stating, We don’t blush. The resolution outlines that Additional remuneration units may be assigned to the higher authorities incorporated into the Cabinet of Advisors based on budget savings generated by the reduction of staffing of the respective jurisdiction. This is subject to the approval of various secretaries, including those from the ministry of Deregulation and Conversion of the State and the Ministry of Economy.

To illustrate, consider the Ministry of Labor. In 2023, it employed 3,600 individuals; that number has now decreased to 2,900, representing a reduction of 700 positions. Using an average salary within the National Public Employment System (SINEP) of $1,200,000, calculations suggest the ministry could receive over 64,000 remuneration units. At a value of $783 per unit (as of December), this equates to nearly $52 million for distribution among senior officials, according to union leaders.

Government Justification vs. Union Opposition

Government sources maintain that this measure is a key component of their strategy to rationalize public spending. They emphasize that ministers and secretaries of State are excluded from receiving these remuneration units, and their salaries remain frozen as December 2023. The government views the remuneration units as a pre-existing mechanism to reward public employees for productivity, relevant initiatives, or merit.

However, rodolfo Aguiar, general secretary of ATE, vehemently disagrees. He stated:

This is a scandalous decision of the government, they are paying some officials to do the dirty work of destroying the State. It is indeed a government of mercenaries. even in the private sector the awards are for productivity, not to say goodbye to employees.
Rodolfo Aguiar, ATE General Secretary

ATE views the policy as a misappropriation of funds, arguing that the savings from what they deem illegal dismissals will ultimately benefit high-ranking officials. The government refutes this claim, asserting that salary savings are not directly comparable to the distribution of remuneration units.

Impending Contract Expirations and Potential for Further Unrest

The implementation of these regulations occurs amidst a climate of uncertainty within the public administration. With the looming expiration of approximately 50,000 contracts at the end of March, tensions are escalating. ATE is demanding the automatic renewal of these contracts and has organized a strike and mobilization to protest the government’s policies.

Beyond the contract renewals, ATE is also calling for the reopening of wage negotiations, citing that current salaries have fallen below inflation levels. Aguiar emphasized the need to address the serious deterioration that all salaries have suffered,noting that many public sector incomes have fallen below the poverty line due to increases consistently lagging behind inflation.

Broader Labor Movement Involvement

While the UPCN, another significant state union, has not yet commented on the specific regulations rewarding staff cuts, it’s general secretary, Andrés Rodríguez, has reportedly informed delegates of their intention to participate in the general strike called by the CGT on April 10th. This indicates a possibly broader wave of labor unrest in response to the government’s austerity measures.