ARTICLE

Salary Increase for Employees of Commerce

On April 12, 2006 the Federación Argentina de Empleados de Comercio y Servicios (FAECYS) (Argentine Federation of Commercial and Service Employees) executed an agreement with the Unión de Entidades Comerciales Argentinas (UDECA)(Argentine Union of Business Companies), the Confederación Argentina de la Mediana Empresa (CAME) (Argentine Confederation of Medium Sized Companies) and the Cámara Argentina de Comercio (CAC) (Argentine Chamber of Commerce) providing for a phased salary increase of 19% to all employees of commerce covered by Collective Bargaining Agreement No 130/75.
April 29, 2006
Salary Increase for Employees of Commerce

1.    Calculation of the increase

The 19% increase shall be calculated based on the basic salary rates set forth in the collective bargaining agreement and pursuant to the following provisions. It is not cumulative and includes the attendance bonus set forth in Section 40 of Collective Bargaining Agreement No 130/75.

It shall be paid as follows:

(a)  10% of the aggregate amount as from April 2006;
(b)  5% of the aggregate amount as from June 2006;
(c)  4% of the aggregate amount as from August 2006.

The increase corresponding to April 2006 shall be paid on May 20, 2006.

In order to calculate the increase, any fixed permanent remunerative additional amounts as well as tickets and/or equivalent benefits currently paid, either included in the basic salary or not, shall be taken into account. The commissions, overtime, attendance bonus (section 40 of CBA No 130/75) and other bonuses granted on an individual basis shall not be considered.

2.    Nature of the increase

The increase agreed upon, as well as the included amount corresponding to the attendance bonus, shall be considered a non-remunerative allocation and shall be included in the pay stub separately and identified as “agreement dated April 12, 2006”.

3.    Contributions

Although the increase is non-remunerative, the pertinent social security contributions shall be made based on the nominal amount as follows:

(a)  as from August 2006, based on the increase agreed upon for April, 2006;
(b)  as from September 2006, based on the increase agreed upon for June, 2006;
(c)  as from November 2006, based on the increase agreed upon for August, 2006.

Only as from December 2006 shall the aggregate amount of the increase be considered remunerative, based on its nominal value and not taking into account (only to such end) the amount corresponding to the attendance bonus.

4.    Effectiveness

This agreement is effective from April 1, 2006 to May 31, 2007 and is subject to approval by the Ministry of Labor and Social Security.

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