Navigating Economic Headwinds: Commerce Employees Gain Incremental Wage Increases

In a move aimed at safeguarding purchasing power amid persistent inflation, the trade employees union has successfully negotiated a new salary agreement with business chambers. The agreement outlines a cumulative 5.4% increase to be implemented over three months, specifically April, May, and June of 2025.

The Agreement Breakdown: Phased Implementation and Fixed Sums

The Argentine Federation of Commerce and Services Employees (FAECYS), in collaboration with key business entities including the Argentine Chamber of Commerce (CAC), the Argentine Confederation of the Medium Enterprise (CAME), and the Union of Commercial Entities (UDECA), finalized the joint agreement for April, May, and June within the 2024/2025 annual parity framework.

The agreed-upon salary adjustments will be rolled out as follows:

• April: 1.9% increase
• may: 1.8% increase
• June: 1.7% increase

In addition to these percentage-based increases, the agreement incorporates fixed sums totaling $115,000, distributed in installments of $35,000, $40,000, and $40,000, respectively. These fixed sums will be integrated into the basic salary starting in July.

This latest agreement builds upon a previous 5.1% cumulative increase implemented during the first quarter of the year (January, February, and march), which was distributed in monthly installments of 1.7%.

Basic Salary Threshold: A Step Towards Financial Stability

According to union representatives, this new agreement will bring the basic salary for trade workers with presentism to $1,123,000. This figure represents a crucial benchmark in the ongoing effort to ensure a living wage for commerce employees.

Union Leadership’s Outlook: Protecting Purchasing Power

Armando cavalieri, the secretary general of FAECYS, emphasized the union’s commitment to safeguarding the economic well-being of its members. Our goal is to sustain the purchasing power of salary to inflation that still persists. He stated, This agreement is part of a constant monitoring that we carry out to protect the entry of working families.

Cavalieri also expressed concerns about the broader economic landscape, noting, We are closely following the situation of formal employment in the sector, since we see with concern some deceleration signals. This concern reflects a growing unease about potential job losses and economic instability.

Negotiation Dynamics: Bridging the Gap Between Demands and Offers

The path to this agreement was not without its challenges. Prior to the finalization, commerce representatives had indicated that an update of no less than 10% was necessary, given the prevailing cost of living increases. Initial discussions even considered a bimonthly agreement for April and May. Ultimately, the quarterly agreement, while falling short of the initial 10% target, represents a compromise between the union’s demands and the business chambers’ capacity.

Addressing Price Hikes: A Call for Collaborative Solutions

Cavalieri has been vocal about the need to address rising prices, stating that You have to agree on some prices of the basket to endure the adjustment and warning that Our delegates in supermarkets inform us of daily remarks. he also highlighted the disparity between dollar-denominated prices and peso-denominated wages,emphasizing the challenges faced by workers in the current economic climate.

The union remains vigilant regarding the evolution of the labor market and expresses concern about the increasing trend of unemployment, as reflected in various employment indicators. This underscores the importance of proactive measures to support workers and stimulate economic growth.