On May 2 2017, a framework agreement of understanding for sustainability of the hydrocarbon industry was signed between the representative entities of the trade union and employer sectors for the province of Chubut, covering both basic and senior personnel.
The framework agreement of understanding for sustainability of the hydrocarbon industry ( the Agreement) has a validity of 24 months and consists of 4 chapters that regulate the general conditions of work in rig drilling and special operations, drilling operations, completion and pulling, operation and maintenance and personnel administration.
Among the most innovative aspects of this Agreement are the fixed-term contractual modality, exemption from income tax, the implementation of dispute resolution mechanisms, strike pay, endowments, work flow charts, wind operations, speed and pace of work, absenteeism, etc.
The signing of this agreement is an important step as its provisions involve mitigating certain extralegal concessions made by the employers' sector when the international scenario of oil was considerably different. The maintenance of such regulations in the current adverse scenario which the activity is undergoing, generated a progressive increase in operating costs, and had a negative impact on the business and in some cases made it not feasible. In this context, the social actors in this Agreement purport to review those distortive concessions and return to a work plan focused on productivity, where the employer is in a position to organize and direct work.
This insight is a brief comment on legal news in Argentina; it does not purport to be an exhaustive analysis or to provide legal advice.