Mounting Pressure for Salary Reactivation

Despite not being explicitly mandated, the Federation of Employees of Commerce and Services (FAECYS) is poised to intensify discussions with business chamber representatives in the coming days. the goal: to secure updated income levels for commerce employees facing persistent economic challenges.

Union Leader Expresses Concerns Over Wage Caps and Declining consumption

Armando Cavalieri, the union’s general secretary, has voiced significant unease regarding the current economic climate. He has criticized what he perceives as a lack of freedom in wage negotiations,specifically targeting the proposed 1% monthly cap advocated by the Ministries of Human Capital and Economy. This ceiling, according to Cavalieri, stifles fair compensation adjustments in the face of rising living costs.

Moreover, Cavalieri has highlighted the worrying trend of declining consumption, which he fears could lead to job losses within the commerce sector. This concern underscores the urgency for wage adjustments that keep pace with inflation and maintain purchasing power.

The standoff: Government Priorities vs.Workers’ Needs

Cavalieri, a veteran of numerous parity negotiations, lamented, I have 50 years of parity, I know what it is to agree; but now the government puts the price of salary. While maintaining interaction with some members of the executive and the Ministry of Labor,he noted the current administration’s reluctance to engage in direct dialog with trade unionists regarding critical issues like wages and employment conditions.

Currently, the government’s focus appears to be on stabilizing macroeconomic factors, potentially delaying immediate engagement with labor unions. However, sources suggest that the 1% monthly cap on wage increases might be relaxed in future private sector negotiations, signaling a possible shift in approach.

The Imperative of Maintaining Purchasing Power

cavalieri emphasized the dangers of negotiations that lead to low salary or liquefy income, stressing the critical need for wages to keep pace with rising prices. It is essential that salaries conform to the rhythm of prices to avoid loss in the quality of life, he stated, highlighting the direct impact of inflation on the well-being of commerce employees.

Reviewing Past Agreements and Future Demands

The upcoming week, shortened by the May 1st holiday and a planned mobilization by the General Confederation of Labor (CGT) on Wednesday the 30th, will see intensified discussions with employers. These talks aim to evaluate the union’s demands for wage adjustments.

The previous agreement, covering the frist quarter of the year, provided a modest 5.1% increase, distributed in three installments:

• 1.7% in January
• 1.7% in February
• 1.7% in March

however, this increase falls short of offsetting the 8.3% inflation experienced during the same period, resulting in a 3.2% loss of purchasing power for commerce employees. This gap fuels the union’s push for a more substantial wage adjustment for the second quarter, encompassing April, May, and June.

Union’s Proposed Wage Increase and Negotiation Strategies

Commerce representatives argue that, with a cost of living increase of 3.7% in March and similar projections for April and May, the update cannot be less than 10 percent. Sources suggest that a bimonthly agreement, covering April and May, is also under consideration as a potential compromise.

Addressing Price Hikes and Consumer Concerns

Cavalieri also addressed the issue of rising prices, stating, we must agree on some prices of the basket to endure the adjustment. He further noted that union delegates have reported daily price increases in supermarkets, exacerbating the financial strain on consumers. Nothing is sold in the provinces, he added, underscoring the widespread impact of the economic downturn.

The Dichotomy of Argentina’s Economy

Argentina’s economic landscape presents a complex picture, characterized by a significant divergence between pricing and wage structures. While prices for goods and services are increasingly denominated in US dollars (dollarized), wages continue to be paid in Argentine pesos. This creates a challenging surroundings for Argentinian workers, as their purchasing power is directly impacted by fluctuations in the exchange rate between the peso and the dollar.

This dollarization trend is not new. For years, Argentinians have sought refuge in the dollar as a store of value, notably during periods of high inflation and economic instability. However, the increasing prevalence of dollar pricing in everyday transactions is exacerbating the strain on household budgets.

prices are dollarized and wages are in Argentine pesos.

Growing Concerns Over Unemployment

Adding to the economic woes, there is a growing concern regarding the rising trend of unemployment across various sectors. Recent employment indicators reflect a worrying pattern, signaling potential challenges for the Argentinian labor market. The impact of this trend is felt acutely by Argentinian workers.

According to the latest data from the National Institute of Statistics and Censuses (INDEC), the unemployment rate in Argentina has risen to 8.5% in the first quarter of 2025, up from 7.7% in the same period last year. This increase highlights the urgent need for policies aimed at stimulating job creation and supporting vulnerable workers.

We are attentive to the evolution of the labor market and we are concerned about the growing trend of unemployment, which is reflected in different employment indicators

March Salary Breakdown by Category

A detailed look at salaries for March reveals the specific earnings across different job categories. All values are expressed in Argentine pesos.

Administrative

• Category A: $ 954,480
• Category B: $ 958,587
• Category C: $ 962,689
• Category D: $ 975,004
• category E: $ 985,260
• Category F: $ 1,000,214

Maestranza (Maintainance)

• Category A: $ 944,219
• Category B: $ 946,953
• Category C: $ 956,528

ATMs (Automated Teller Machines)

• Category A: $ 957,899
• Category B: $ 962,689
• Category C: $ 968,839

Seller

• Category A: $ 957,899
• Category B: $ 978,426
• Category C: $ 985,265
• Category D: $ 1,000,315

General Auxiliary

• Category A: $ 957,899
• Category B: $ 964,733
• Category C: $ 987,316

Special Auxiliary

• Category A: $ 966,112
• Category B: $ 978,424

Looking Ahead: Navigating Argentina’s Economic Challenges

The combination of dollarized prices, peso-denominated wages, and rising unemployment presents a formidable challenge for Argentina. Addressing these issues will require a multi-faceted approach, including policies aimed at stabilizing the currency, promoting job growth, and protecting vulnerable populations. The path forward will demand careful planning and decisive action to ensure a more stable and prosperous future for all Argentinians.