In an interview on Infobae live, the president of the Argentine Industrial Union (UIA), Martín Rappallini, supported the elimination of the article on medical licenses from the labor reform and maintained: “We deeply support it because I believe it is an important regime change that gives predictability to labor relations, without a doubt.”
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The president of the UIA recognized the difficulty of controlling certain illnesses, especially in the psychiatric field: “In general, you found companies that had two, three or four workers with medical licenses and many times they were not very determined.”When referring to the challenges of the reform, he added: “It is not that easy, especially because then you have to apply it in practice.”
Asked if the elimination of the article implies breaking an agreement with the private sector, Rappallini clarified: “We were not the ones who proposed this percentage. We had proposed another non-remunerative percentage in the May Council.”He insisted that the solution must take into account the reality of the industry and the need for predictability.
Rappallini valued the dialogue with the Minister of Economy, Luis Caputo, and revealed that the UIA presented a series of proposals to improve the situation in the sector.”We talk above all about the FAL and also about the reduction in contributions, but we talk about the economic reality that we are experiencing. Many sectors of the industrial sector have not yet recovered to the levels of 2022,” he described.Among the proposals raised, he mentioned the need to “generate different financing alternatives, such as FoGAr, which is a fund that is currently in Argentina with $1.5 billion, focusing it on both SMEs and consumption.”
The industrial leader also suggested “some VAT discount mechanisms for construction, which is a very weak sector,” and proposed “lowering labor costs by taking VAT charges on account, because there are very informal sectors.”According to Rappallini, this could facilitate formalization “without fiscal costs.”
Regarding the fall of the industry since the inauguration of President Javier Milei, Rappallini said: “We understand that there has been a process of macroeconomic organization, of lowering inflation, of ordering of public accounts, but the prices of the industrial sector fell above all the rest of the economy. That is why the effort has been made by the industrial sector.” He indicated that there are still “sectors with falls between twenty and thirty percent compared to the2022.”
When analyzing the scope of the labor reform, Rappallini emphasized: “This is a new regime that will give predictability to the labor framework. Employment generation depends on many factors, fundamentally on whether the economy is reactivated.”He gave the case of Brazil as an example: “In 2017 they carried out labor reform and every year there was a great generation of employment.”
Regarding the debate between labor and tax reform, he said: “I think they are independent. For me, labor reform is very important because it is one of the most important factors of what productivity and competitiveness mean. I also believe that tax reform is important, without a doubt.”
In response to Minister Patricia Bullrich’s statements about the business chambers and their resistance to changes, Rappallini stated: “We were one of the chambers that strongly supported this reform in all its aspects. I also understand that there have been different views on this reform. Some chambers, such as the Chamber of Commerce or CAME, spoke out against some articles, but I now believe that that has been settled and there is general support.”
Regarding the salary payment system, the head of the UIA pointed out: “It makes no difference to the business sector to pay through a bank or a virtual wallet. The important thing is that when you pay a salary and it goes to the banks, this is part of the stock to give credit to Argentina. The raw material for credit are the workers’ deposits.”
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