New Year’s Bonus
The Argentine Government, the General Labor Confederation (“C.G.T.”, after its Spanish acronym), and the main company chambers have called for the initiation of sector negotiations regarding the payment of an extraordinary bonus by the end of this year, for an amount of AR$ 2,000 for private and public employees.
On October 19, 2016, in the framework of the first meeting of “Dialogue for Production and Employment”, the Executive Power, the C.G.T. and the six main business associations agreed to “open a negotiation, sector by sector” to award an extraordinary bonus by New Year to both private and public employees.
The resulting Minute of the agreement established that the different sectors will negotiate a New Year bonus compensating the 2016 inflation index, which will be non-remunerative and extraordinary, with a reference figure set at the amount of AR$ 2,000 per worker. Please note that the Ministers clarified that the agreement is not mandatory for employers, but simply conveys a political statement on a purely indicative basis, promoting a negotiation between unions and businessmen.
As a consequence of the agreement, the C.G.T. suspended its call for a national strike. Until November 2, 2016, the sectors that had agreed to the payment of this bonus are the Oil, Banking, Toll booths, UTEDyC, and the Private Security sectors.
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.