The National Government has promoted payment of a non-salary bonus when the economy is at its worst, and the Workers’ General Confederation [CGT] is seeking a pay rise and the business sector demands that it could be offset against taxes or any raises that have been already granted. Nobody gets what they want, and the bonus is a hybrid that will spark off dispute before the elections.
Published in El Cronista on October 01, 2019
It is clear to me that the Executive has no authority to impose the mandatory payment of a bonus because there is no substantive law in support of such power. The Executive Order itself makes a general reference to that lack of authority, and highlights that based on the principle of collective bargaining autonomy the signatory parties to collective agreements should decide on this matter.
Whether controversial or not, Executive Order 665/2019 establishes a non-salary benefit for all workers under employment relationship at the private sector, including workers covered under collective bargaining agreements and exempt employees, in the amount of ARS5,000 (five thousand Argentine pesos), which in principle will be paid with October wages, i.e. within the first four business days of November, or in such terms, installments and conditions set forth by the signatory parties to collective bargaining agreements in accordance with the principle of collective bargaining autonomy. In fact, there are agreements that include this bonus; others that will pay it in installments; others that offset it against other payments; and in most cases the parties will seek to restructure wages under each collective agreement. Seguir leyendo The Bonus of Discord In the Worst of Economic Times