With a 25-percent annual pay increase for workers in its sector, Argentina’s Teamsters Union on Tuesday sealed the strongest deal so far this year in collective wage bargaining talks.
The union led by Pablo Moyano sealed a deal that includes an inflation revision clause. The 25-percent increase will be applied to teamsters' wages in three instalments.
The union cancelled a 48-hour strike for Tursday June 26 and Wednesday June 27, which it threatened to carry out if the government and businesses failed to yield to its demands.
The government in December set an inflation target of 15 percent, a figure that was quickly ridiculed by unions and economists.
In this sense, the CGT confederation will nonetheless carry out strike activity on Monday 25 with workers in most sectors of the economy having failed to secure wage increases above 15 percent.
The inflation target “was excessive”, President Mauricio Macri said Sunday. “It was the [former] Treasury minister’s conviction, no body asked for it”, he told star journalist Jorge Lanata on Sunday's Periodismo para todos, taking aim at former Treasurer Alfonso Pratt Gay.
“We needed a path toward lower inflation but nobody understands what it means to restructure public service costs and the impact these [changes] have on inflation”.