Hidden connections between CGT, UIA's fresh alliance, and SMEs exerting influence on the government
Loose Cannon in the Union Corner
The CGT finds itself in hot water after the third general strike, with a hardline faction dominating the leadership but lacking a strategy to break free from the cycle of permanent conflict and negotiate with the government. Meanwhile, the dialogue sector remains in the minority, as an ultra-oppositional attitude from its peers provides ammunition to libertarians hoping to take down union power.
These days, the chances of the Government and CGT striking a dialogue are looking slim. The government sees union leaders tied up in protests on the other side of the street as a useful tool in their bid for votes during these decisive elections. Why bother calling them to negotiate, then?
Desperate for a way out, the union leadership has been exploring indirect routes to force a conversation with Javier Milei's administration. One such path involves working through businessmen. With tripartite dialogue off the table, the CGT is testing the waters of bipartite dialogue, hoping to find common ground and increase their bargaining power.
In the background, there's a push for bilateral agreements on labor law modernization. Union leaders stress that these discussions would not compromise worker's acquired rights. Instead, they aim to strike a balance between change and union power, unlike the Government, which has already imposed its reforms.
Now, you might be interested in the swan song of Victoria Villarruel, who left Pope Francis with a heartwarming handwritten note: "I don't lose my joy as you advised." But let's get back to business.
The moderates of the CGT enjoy a fluid relationship with the Argentine Industrial Union (UIA) and the Group of Six, led by the likes of Daniel Funes de Rioja. Recent weeks have seen a closer bond between Gerardo Martínez, the main dialogue exponent of the central union, and Martin Rappallini, the president of the Industrial Union of the Province of Buenos Aires (UIPBA).
This close relationship stems from growing discontent with the libertarian economic model affecting various productive areas of Argentina. Many believe the new leadership of the UIA, with a stronger presence of industries such as food, metal-mechanics, textiles, chemicals, pharmaceuticals, automotive, software, and mining, will take a harder stance against the Government.
In private discussions between industrialists and unionists, the idea of seeking bilateral agreements on labor law modernization is under consideration. However, these conversations should not weaken union power by eliminating the solidarity quota or repealing indefinite re-election in unions, as proposed by the Government, the UCR, and the PRO.
Last year, the UIA publicly expressed its support for the current union model, which should reassure its leadership. When the Labor Democracy project was discussed in the Labor Legislation Commission of the Chamber of Deputies, the UIA representative explicitly stated opposition to changing the law 23.551 of Trade Unions, as proposed by the UCR and PRO project: "We are respectful of the freedom and autonomy of trade unions."
As anticipated by our website, a suggestive tripartite signal in favor of social dialogue was given this Wednesday by the Secretary of Labor Julio Cordero; Daniel Funes de Rioja, and Gerardo Martinez during a seminar of the International Labor Organization (ILO). However, it's clear that Cordero and Martinez are now in the minority within the Government and the CGT.
The co-leader of the CGT, Hector Daer, has taken a combative approach, organizing a meeting with representatives of small businesses. At the meeting, issues regarding metal, textile, plastic, and footwear sectors, among others, were discussed, as these industries are the most affected by the Government's economic measures. Small businesses presented their problems in producing and selling their products, and everyone agreed on a shared slogan: "Without industry, there is no nation."
Is a business-union alliance shaping up to take on Milei? While some CGT members seek out big industrialists, others focus on small businesses. For now, each group seems to be playing their own game. Keep a close eye on the developments in the Argentinian political and economic landscape!
- The CGT, finding themselves in a predicament after a series of strikes, are exploring indirect means to dialogue with Javier Milei's administration, including approaching business leaders.
- While the Government views union leaders engaged in protests as useful during elections, the CGT leadership is testing the waters of bipartite dialogue, hoping to find common ground and strengthen their negotiating power.
- In the background of this dialogue, there is a push for bilateral agreements on labor law modernization, with union leaders ensuring these discussions would not compromise workers' rights.
- The moderates of the CGT share a close bond with the Argentine Industrial Union (UIA) and its president, Martin Rappallini, as they both express growing discontent with the libertarian economic model.
- In private discussions, industrialists and unionists are considering seeking bilateral agreements on labor law modernization, but they emphasize the importance of maintaining union power.
- The co-leader of the CGT, Hector Daer, is organizing meetings with representatives of small businesses to address issues in sectors like metal, textile, plastic, and footwear, as these industries are heavily impacted by the Government's economic measures.
