FULL WEEK FOR CONGRESS
The lower house Chamber of Deputies on Thursday debated the Labour Modernisation bill approved by the Senate earlier in the month against a backdrop of protests immediately outside Congress (with violence starting to be reported at press time) and a CGT/CTA general strike nationwide. On the same day the International Monetary Fund (IMF) threw its support behind the labour reform bill with spokesperson Julie Kozack describing it as a move towards job creation by favourably shifting the balance between formal and informal employment, also throwing in a kind word for the accelerated accumulation of Central Bank reserves so far this year. The first half of the week (including the two public holidays for Carnival) was largely absorbed by a controversy over the bill’s Article 44, which irked not only the opposition but also government allies (including centre-right PRO), followed by its eventual elimination on Wednesday after unsuccessful attempts to appease the critics with an amendment (an Article 208) – committee approval would not have been possible otherwise. The controversial article would have slashed sick leave pay to half or three-quarters. Pleading a concern for their safety against possible violence, the Security Ministry controversially restricted journalists to an “exclusive zone” in the side streets of Congress. Prior to taking on labour reform, Congress late last week approved the free trade agreement between Mercosur and the European Union by an overwhelming margin of 203 votes (including 43 Peronists) to 42 (consisting of 38 Peronists and four FIT leftists). Peronist support included caucus chief Germán Martínez while former Cabinet chief Agustín Rossi celebrated the agreement as “strategic insubordination against (United States) President Donald Trump.” This month’s extraordinary sessions of Congress will run until the very last day of February and include a new University Financing bill, it was officially confirmed by Decree 103/2026 published in the Official Gazette last Wednesday.
UNIONS ON WARPATH
While Thursday’s CGT/CTA general strike was in progress at press time, it was assured greater impact than their previous stoppage last April due to the adherence of the transport unions although many shops opened. On the previous morning the CGT held a press conference to ratify and justify its move, addressed by two of its three secretaries-general (Jorge Sola and Cristian Jerónimo). Sola pointed to the destruction of 300,000 registered jobs in the past two years even prior to the reform with the closure of FATE tyre-makers that same morning enabling him to add almost 1,000 more, deploring Argentina’s social and productive fabric being torn apart. The insurance clerk unionist assured that “the CGT is not against labour modernisation” but sought a modernisation which looked ahead. He rejected the government bill as weakening the individual and collective rights of workers while implementing a massive transfer of funds to their employers, also claiming that the labour reform was “unconstitutional.” Sola further accused the government of not responding to calls for dialogue. Jerónimo rejected the bill as “totally regressive with its priority stripping workers of their rights … and does not modernise anything.”
TYRE PLANT PUNCTURED
FATE tyre manufacturers announced Wednesday that they were shutting down their San Fernando plant for good after over 80 years of production, proceeding to pay out severance to their 920 employees. “The changes in market conditions oblige us to face future challenges from a different focus,” pointed out the company owned by the Madanes Quintanilla family, hinting at fierce competition from often Chinese imports while also complaining about their tax burden and currency restrictions. Alejandro Crespo, secretary-general of the tyre workers’ union, was reportedly arrested by police when attempting dialogue with the management. Apart from being the main producer on the domestic market, FATE has also exported to Europe, the United States and Latin America.” Later the same day the Human Capital Ministry represented by Labour Secretary Julio Cordero imposed compulsory conciliation, thus postponing any dismissals for a fortnight.
CANADIAN DISINVESTMENT
The Canadian multinational Saputo has sold 80 percent of its local dairy business to the Peruvian company Gloria Foods for 543 million Canadian dollars (or US$400 million) while retaining the remaining 20 percent. Sporting such historic brands as La Paulina, Ricrem and Molfino, Saputo has been the country’s top milk producer until now, even ahead of such dairy giants as Mastellone/La Serenísima and commanding 11.6 percent of the total domestic market as well as being an active exporter.
MILEI IN DC (AGAIN)
President Javier Milei attended the inaugural meeting of his United States colleague Donald Trump’s brand-new Board of Peace in Washington last Thursday, making a two-minute speech (in contrast to Trump’s lengthy harangue) in which he pledged the support of Argentina’s White Helmet troops for peace-keeping and praised Trump’s Gaza Strip peace efforts while rubbishing “compromises over fundamental issues.” Trump made a point of boasting how he had salvaged Milei in last October’s midterms and bizarrely praised the attractiveness of Paraguay’s leader Santiago Peña. Apart from Paraguay, Argentina is the only country from the Americas among the 19 signatories of the Board’s founding charter.
MAGA AND MILEI
Last Wednesday United States Ambassador Peter Lamelas posted: “Proud to have purchased this iconic painting (from a world-renowned MAGA artist) and will be exhibiting it and others at the Palacio Bosch in Buenos Aires, Argentina for the 250th Independence Day Anniversary of the USA event this year!” The Ambassador attached a photo of the painting (a portrait of President Javier Milei) but did not mention its price tag, later reported to be US$10,000.
TAPIA SUMMONED
Judge Diego Amarante last Thursday summoned AFA Argentine Football Association president Claudio ‘Chiqui’ Tapia and AFA treasurer Pablo Toveggino to testify on fraudulent money movements and tax evasion to the tune of almost 20 billion pesos in 69 different episodes while prohibiting them from leaving the country. The summons responds to a request from ARCA tax bureau plaintiffs. Tapia is to testify as from 10.30am on March 5 and Toveggino the next day. Three other AFA board members have also been summoned and are also banned from leaving the country. AFA’s lawyers have already appealed. Tapia will need the foreign travel order lifted before the World Cup kicks off...
VIP ÑOQUI
Neuquén provincial Energy Ministry official Nicolás Salvatori, the son of late 1987-91 governor Pedro Salvatori, has been caught red-handed by security cameras this month punching in and out for work, thus confirming accusations of being a “ñoqui” (ghost employee) and leading to his dismissal by the current provincial administration headed by Rolando Figueroa after at least five years of collecting a salary for virtually no work. The province is now proceeding to sue him to recover those previous salaries. This episode forms part of a general crackdown by Figueroa.
DIVING TRAGEDY
The body of Sofía Devries (aged 23), who went missing while diving off Puerto Madryn last Monday, was found by a Coast Guard diver last Wednesday. Hopes of finding her alive were already abandoned on Tuesday. The local authorities are investigating whether or not there was neglect on the part of her diving instructors while her boyfriend accused the Coast Guard of bureaucratic delays.
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