Due to accelerating inflation – it went from 50.7% yoy in January to 83% in September and could end at over 100% in December – the peers renewed at the beginning of the year signed wage increases that soon ceased, forcing one, two or more updates over the course of the year. And there are still 2 months to go until the end of 2022.

The agreements that were signed in the second quarter or mid-year and started with higher rates of nominal wage increases which also they had expired due to the inflationary peak. And those that were signed after or in the last few weeks agreed for larger increases and up to 3-digit end-to-endbut mostly with installments that will begin to be paid only in 2023. And also with revision clauses.

This indicates that the calendar and parity map have been altered by the surge in inflation and the signed agreements “ran after inflation”. Y what was initially presented as a “good deal”so lonely 2 or 3 months later they became “losing” wage agreements. in the face of the rapid increase in prices and without recovering the wages lost in the previous months.

In the first eight months of this year, formal compensation with contributions to the Social Security (consisting of salaries under the agreement and outside the agreement) accumulated an increase of 51.7% against an inflation of 56.4%. Compared to a year ago, wages increased by 72.3% and inflation by 78.5%.

If we consider a longer period, according to the LCG Consultant, the decrease in the purchasing power of the wages of workers enrolled in July of this year compared to November 2017, including the last 2 years of the previous Government, is 20.5 %.

So, 2 months from the end, the provisional budget for this year is that the signed wage contracts are lower than the price increasewithout recovering what was lost and adding a new loss of wage purchasing power.

The thing to keep in mind is that the agreements generally have a duration of 12 months but do not coincide with the calendar year. Some depart from January to December (bank cash) and others from April to March of the following year (like commerce) or truck drivers from November to October of the following year.

Therefore, any comparison of parities must take these differences into account.even more so when the rise in prices year on year could exceed 100% and that of 2023 is uncertain, with a very high starting floor.

The minimum salary, viable and mobile with 7 adjustments, this year until November will go from $ 32,000 to $ 57,900, an increase of 80.9%. Without a new adjustment in December, it would be 20 points or more below inflation YoY

Based on the data of the Ministry of Labor and the Eco Go Consultant, from the large trade unions, the Banking Agreement was initially signed which runs from January to December with increases in 4 sections: 16.1% January-March-, 18% April – June, 17% July-September, 8.9% between October-December. In total 60%, which was well below the annual inflation.

The banking parity met again and settled on 14% for September, absorbing 8.9% in October, 10% in November and 9% in December. In total 94.1% end-to-end, plus a $ 185,500 Banking Day bonus. It would end up a few points below year-on-year inflation.

Oil producers, even with a January-December agreement, initially signed an unprofitable 25% since January which became profitable in April plus 11.5%: 36.5%. In addition to the remuneration in April, increases were added that brought the index accumulated in September to 64.3%. In October, 20.3% was added, bringing the accumulated interannual to almost 98% and it would also be a few points below inflation.

Other agreements run from April 2022 to March 2023, such as trade and construction, with renewal clauses in November. Or that of Tires – July 2022 / July 2023 – with inflation adjustment clauses in April and June.

The agreements, therefore, are not comparable: they cover different periods and the review clauses would modify the final result according to future inflation.

Truck drivers agreed 107% between November 2022 and October 2023. In other words, we start with 2 months of 2022 and 10 months of 2023. But if we consider the increases this year due to the previous parity and the 2 installments of this year, it shows 80%, at least 20/25 points below expected inflation.

4 tranches have been agreed on the October salaries: 27% in November, 27% in February, 27% in May, 26% in August 2023) and a bonus of $ 100,000 in 4 installments in March, April, May and June 2023, with a An additional 10% for long-distance transport in addition to the basic salary of the first-rate driver), plus a 10% increase per day, further increase for the Post, Logistics and Relocation branches). It incorporated a review clause in April 2023.

Food Parity – which runs from May 2022 / April 2023 – has signed a first agreement with 59% and a second agreement with 12% (6% in September and 6% in October). So far it is 71%, but the year-over-year result could change due to new adjustments.

YN