RSS   Newsletter   Contact   Advertise with us

Argentina petrochem workers get 37% wage hike to meet high inflation

Staff Writer | July 6, 2016
Argentina's chemical and petrochemical workers have secured a 37% wage increase this year, though that is still below the rate of inflation in the country's troubled economy.
Argentina petrochem workers
Higher salaries in Argentina   The increase is retroactive
The Federation of Workers of the Chemical and Petrochemical Industry (Festiqypra), a union umbrella group, said that the increase is retroactive from May 1, adding that the deal includes a one-off bonus of Pesos 8,100 ($542) to be paid at the end of the year, Platts reports.

Unions have been demanding more than 30% salary increases this year after a surge in the inflation rate to more than 40% from 26% in 2015. The faster inflation coupled with hikes of up to 400% in public transport fares and utility rates have crimped consumer-spending power, making it harder to make ends meet.

Festiqypra's secretary general, Ruben Salas, said he had pushed for a more than 40% increase, but said the 37% rise would make the utility rate hikes "more bearable" for workers.

Chemical and petrochemical producers like state-run YPF, Dow Chemical, Indupa and Pampa Energia had sought to contain the wage hikes at 28%, Salas added.

Polymer and synthetic rubber production rose 0.5% in May from the year-earlier month, as plastic goods output increased 3.4% over the same period, according to the latest data of the state statistics office Indec. Over the same period, chemical production fell 4.3% and agrochemicals dropped 16.9%.