The government of Argentina announced late on Friday (13), by a decree of necessity and urgency, that workers dismissed without cause in the next 180 days will receive double the money of termination.
According to the Argentinean newspaper Clarín, the text of the decree justifies the decision due to the severity of the employment crisis, whose unemployment rate increased to 10.6% in the second quarter of 2019, a point more than twelve months ago. The move was surprising after President Alberto Fernandez himself relativized its impact during the election campaign.
However, during his speech to the Legislative Assembly, the president was emphatic in describing the employment crisis. "Today, unemployment affects almost 30% of young people and, even at higher rates, young women. There are over 1.2 million young people who neither study nor work," he said.
The "Need and Urgency Decree" (DNU) states that "affected workers will be entitled to double the corresponding remuneration in accordance with current legislation".
The DNU recalls the so-called "antidepid" law that Congress passed in 2016. This law promoted by truck driver Hugo Moyano and Peronism banned unjustified compensation for six months and restored double compensation, but was eventually vetoed by former President Mauricio. Macri.
It is not yet known how companies will receive this news. Days ago, the Union Industrial Argentina Argentina (UIA) said it considers it a mistake to return the double compensation payment. "It's not a tool for this moment, as production should be a priority," said UIA member Jose Urtubey.
President Alberto Fernández Alberto Fernández and Cristina Kirchner take office in Argentina "> took office on Tuesday (11), promising the end of former President Mauricio Macri's pro-market policies as inflation rises above 50% amid rising poverty and low economic growth.