Austerity shock: caution at the labor confederation, panic among state workers

State workers union estimates at least 10,000 people in public jobs will be fired

The General Confederation of Labor (CGT) received the austerity measures announced by Economy minister Luis Caputo last night with caution and concern, while state workers unionized under ATE (State Workers’ Association) went into full alert. This sector expects the year to end with a high level of conflict and the imminent termination of at least 10,000 contracts in national administration jobs. In the CGT, meanwhile, it was all silence and expectation over the fact that public spending cuts and adjustments will not affect — immediately at least — the levers of the traditional trade unions’ power.

The CGT’s moderation is the first response to a meeting the leaders held with Interior Minister Guillermo Franco after the run-off, where he tried to calm the union leaders’ concerns. He told them that the measures they were preparing would not involve curtailing the regular wage rounds, significant financial damage to union healthcare providers, or altering the Union Associations bill that guarantees their exclusivity in worker representation and labor conflict resolution. Until last night, the announcements seemed to stick to those premises.

“The speech was incomplete and unclear, it showed only definitions that alter the inflation rate and worsen angst and poverty without even a glimmer of hope,” said Gerardo Martínez, head of CGT’s international department and leader of the construction workers’ union (UOCRA). Martínez preferred not to speculate on potential reactions from the confederation and said that right now they will “analyze the measures.”

The leaders of the Nation’s Civilian State Workers’ Union (UPCN), the largest state workers’ union, gave no statements and showed little apparent concern. When asked about Caputo’s presentation, they said that in the coming days they will analyze the consequences in detail, and that the announcement did not imply harming the rights of permanent staff or temporary workers who enjoy some of the prerogatives of stable workers.

In contrast, ATE’s national and Buenos Aires branches responded with serious concern and belligerence. Rodolfo Aguiar, the recently elected secretary general, said on Thursday that he would call for an assembly of all provincial branches in order to decide a course of action.

“This 118% devaluation is a massive cut that liquidates the income of workers and retired people. They have been robbed, while the caste wasn’t even touched. We will not accept a wage freeze,” Aguiar said. The leader also announced that they will “demand an immediate reopening of wage rounds” and that “these people say they are here to prevent a catastrophe, but the truth is that in January and February we will be in the worst hell.”

In turn, Daniel Catalano from ATE’s Buenos Aires City branch said that the announced cuts “don’t solve a thing” and expressed concern over the fate of “people with disabilities and trans people who joined the public sector thanks to the legally enforced job quota” and who, according to Caputo, will have their contracts terminated on December 31.

One of the cuts announced yesterday was that state employees who have been in their jobs for less than a year will not have their contracts renewed.

“I’m worried that so far I haven’t seen any coordination” with the rest of the workers’ movement, said the leader. Catalano mentioned the meeting held at the CGT between the leaders of the confederation, the CTA (Argentina Workers’ Central) branches (Workers’ CTA and Autonomous CTA) and Kirchnerite social organizations, and demanded that they “put the content on the picture they took at the Felipe Vallese Hall”. He also called on the 109 deputies of Unión por la Patria to “summon all social sectors in order to analyze the measures in Congress” and organize potential resistance.

Originally published in Ambito.com / Translated by Agustín Mango

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