Double severance pay and ban on layoffs: the Government analyzes an intermediate scheme for 2022

The Government seeks to disarm both measures in a phased manner starting in 2022 REUTERS / Matias Baglietto

With the economy recovering from the ravages caused by the restrictions caused by the coronavirus pandemic that resulted in a 9.9% drop in GDP in 2020, and with official projections of obtaining a similar rebound for this year, sources from the economic team confirmed to Infobae that double severance pay and the ban on layoffs will not continue in 2022 as they apply today, but rather an “intermediate scheme” will be sought to gradually eliminate both measures.

Economic conditions are now very different from those when the measures were taken in the midst of the pandemic and the economic emergency. It would not make sense to continue with the same as they are now”, The sources assured this medium.

In that sense, they detailed that it would not be a total elimination but rather that an intermediate point will be sought so as not to disarm the measures immediately but in a staggered manner. Notably at this time it is a matter that worries the industrial sector despite the recovery in activity that was recorded in recent months.

At the factory headquarters, they maintain that these measures discourage job creation and that although they are understood as part of an emergency situation, such as the start of the pandemic last year, they no longer have any justification and complicate the companies’ plans. of hiring staff.

Economic conditions are now very different from those when the measures were taken in the midst of the pandemic and the economic emergency. It would not make sense to continue with the same as they are now

To limit the impact of the coronavirus pandemic on the labor market, the Executive Branch imposed a ban on layoffs and the penalty of paying double severance pay to companies that ordered layoffs without cause for their staff. In that framework, Firms cannot currently dismiss their employees without just cause and for reasons of force majeure or a decrease in the demand for labor. The measure applies to the private sector, not the public sector.

The ban on layoffs was initially decreed at the end of March 2020, after President Alberto Fernández publicly questioned the businessmen who decided to fire workers in the midst of the pandemic and the economic brake resulting from the mandatory quarantine. The decision was made after the Techint Group’s attempt to lay off 1,450 workers from the construction company due to the paralysis of the activity. The first DNU was in force from April 1, the second, from June 1, and the third from December 1).

A few days ago, the Minister of Labor Claudio Moroni He affirmed that the current conditions of the economy “are different” for which reason they were evaluating modifying these measures.

In fact the president himself Alberto Fernandez slipped in October that the ban on layoffs and double severance pay “They will not be sustained over time”. As he explained, they were measures adopted exceptionally by his Government to address the economic crisis caused by the pandemic.

The Minister of Productive Development Matías Kulfas remarked to the UIA that in September the country registered the highest level of activity in more than three years, producing 4.7% above September 2019
The Minister of Productive Development Matías Kulfas remarked to the UIA that in September the country registered the highest level of activity in more than three years, producing 4.7% above September 2019

In this framework, the Minister of Productive Development, Matias Kulfas, said this Thursday at the “7 Industrial Conference organized by the Argentine Industrial Union (UIA), that lhe Argentine economy is recovering faster than expected. According to the official, in September the country registered the highest level of activity in more than three years, producing 4.7% above September 2019 and 2.6% above September 2018. In this context, he highlighted: “Some international organizations predicted that only in 2026 we were going to reach the GDP of the prepandemic and we have already reached it in this year 2021. Investment also recovered strongly, exceeding the levels of 2019 by 13%.”

While, Hector Daer, Secretary General of the General Confederation of Labor (CGT), participated in a panel on labor at the UIA conference together with the Minister of Labor Claudio Moroni and the Minister of Social Development Juan Zabaleta. In this context, he assured: “We can achieve employability from several points of view, but the main one is the conditions of the internal market and of productive development, with added value. That is the great challenge we all have ”.

To its turn, Juan Zabaleta, Minister of Social Development of the Nation added: “The path that we are going to travel in this Argentina that is recovering is that of work in a clear model of industrial production, development, with investments and fundamentally with job creation.”

While Claudio Moroni He said that the lack of employability is the product of short cycles. “Vocational training is essential. We will have to do it for very complex skills but also for simple ones, which make the same practice of building skills for the job“, he pointed.

He also highlighted the implementation of plans such as “Te sumo”, which brought together more than 2,000 young people who finished high school and got their first job, and the creation of “The Employment Portal”, where those who want to work can register, but also companies looking for workforce.

He also considered the creation of the “Tripartite Committee” with businessmen and union representatives “to see what the specific training needs are (because) Argentina has allocated a lot of funds to the creation of skills that were not necessary.”

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