The Indec released the data of July salaries. “In July 2024, the Wage Index increased 7.5% monthly,” the report details. That month salaries were above inflation, which was 4%. The president celebrated the data and in In the end there is a reward.” What do they celebrate? A day earlier, the same organization confirmed that almost 25 million people are poor in the country with alarming levels of child poverty.
The July salary data is just a snapshot of what is happening with purchasing power since the Government took office. The effects of the Caputazo in salaries, that is, the December megadevaluation and the subsequent inflationary flash; as well as the collapse of purchasing power in recent years (inheritance from Macrismo and the Frente de Todos).
What happens to the purchasing power of salaries?
According to the data published by Indec, it is true that in the formal private sector Salaries recovered in April, May, June and July. But this did not allow us to recover what was lost in the first months of the Government. The purchasing power of this sector was 2.6% lower in July than its level in November 2023. This is the sector of the working class that is best paid and has equal pay. However, it is 25.6% below 2015 (July 2024 versus October 2015).
In it public sector (at all levels) salary purchasing power was more fluctuating, but did not show that partial recovery over four months that the private sector showed: In July, the public sector showed a drop of 16.9% compared to November 2023. The loss in relation to 2015 is 41.1% (July 2024 versus October 2015).
The most delayed are the unregistered workers. The fall in real wages for the informal sectors in July was 10.3% in relation to November 2023 and 55.6% in relation to October 2016 (year in which the Indec series begins).
The jump in inflation in December as a result of Luis Caputo’s devaluation meant a blow to purchasing power and caused a jump in poverty in the first half of the year. The union leaders are complicit in the deterioration of the living conditions of the working class and continue to truce.
Freedom for employers and salary corset
According to what was reported in the media, the Government announced to the state unions that there would be no increase for public workers in the months of November and December. It was also known that the Ministry of Labor would not approve more private joint ventures that exceed 2% per month. The freedom that the Government proclaims is only for employers, while it attempts to restrict salary agreements. Will the Government be able to impose this salary ceiling? It is an open arm wrestling match.
The oil workers broke the salary cap after seven days of strike, which paralyzed the country’s agricultural export production, and achieved a basic salary of $1,500,000. In the middle of this fight there was a campaign orchestrated by the media to say that the claim was unacceptable. Far from being unacceptable, it is an amount that barely exceeds the minimum consumption basket calculated by the Internal Board of ATE Indec, in July it was $1.468.989.
Does the media campaign against workers sound familiar to you? The media does the same with the workers of Aerolíneas Argentinas who are fighting for salaries, against anti-union dismissals and privatization. The Government wants to attack the right to strike, but it had a setback this week and a precautionary measure suspended the Milei decree that established the essentiality of the service.
Other sectors are also fighting, such as health workersnurses, residents, doctors, administrative workers in different hospitals such as Garrahan in demand of salary recomposition and in defense of public health.
This week there was a national university strike throughout the country in rejection of the adjustment and to stop the veto of the Financing Law. Teaching and non-teaching workers rejected the miserable agreement offered by the Government. The list of sectors in struggle could continue as tire workers, Arsat workers, UOCRA workers in Jujuy.
to the streets
This October 2, the university march against the presidential veto takes place. The CGT has to call a national strike that day so that millions of workers can participate in the mobilization. It is not just about salary and recovering everything lost, but also facing the ongoing attack by the Government.
Different sectors are going to mobilize, such as state workers (new layoffs were announced this Friday), teachers, health workers, retirees, and students. There are plenty of reasons to mobilize, let’s hold a great national day against the Milei adjustment plan.
Source: www.laizquierdadiario.com
