Saturday, September 6, 2014

Argentina: President Fernández Hikes Minimum Wage 31%

According to The Latin American Tribune, the Argentine government raised the minimum wage by 31% to 4,400 pesos ($523) a month, according to a decision published Tuesday (September 2) in the official gazette.

The pay hike was agreed upon at the annual Wage Council, which on Monday (September 1) convened representatives of the government, unions and businesses at the Labor Ministry.

The decision, signed by Labor Minister Carlos Tomada, establishes a new wage increase beginning in January 2015, when the monthly minimum wage will rise to 4,716 pesos, equivalent to $561 at the current exchange rate.

COMMENT: Like most populist nations that seem compelled to addict their citizens to “free stuff and gratuities, rather than earning it on their own,” President Fernández’ modus operandi seems to continually draw Argentines back to the “trough.”

In negotiations pursued by different unions this year, average wage increases of 29.7% were achieved, according to official figures.

Last year the minimum wage increase amounted to 25%.