After the breakdown of discussions between unions and companies, President Javier Milei announced that he would not determine a minimum wage. Regardless, under present legislation, the Government is mandated to make decisions through the Secretary of Labor, Omar Yasin. Hector Daer, the head of the CGT, told Clarion that they would insist that Labor approves it and then gets the endorsement from the Executive Branch.
Milei, in his radio statements, mentioned that he had no intention of signing a decree to update the minimum, vital, and mobile wage. He believes that this issue should be addressed by workers and their employers, rather than a politician determining a price.
However, employment law No. 24,013, related to the Minimum Living and Mobile Wage Council, is quite explicit. The council comprises 16 representatives each from employers and workers, appointed by the Executive Branch and presided over by a president appointed by the Ministry of Labor and Social Security. The president has the power to make decisions if no consensus is reached at the end of two sessions.
In this scenario, Resolution 27/2024 of the Ministry of Human Capital appointed Omar Yasin, the Secretary of Labor, Employment, and Social Security, as the Alternate President of the National Council of Employment, Productivity and Minimum Wage, Vital and Mobile.
On the 15th of last Thursday, two council sessions were held, but no agreement was reached. Marcelo Aquino, a business advisor, informed Clarion that the Government is required to make a decision under current legislation. Cynthia Benzion, head of the Association of Labor Lawyers, and Matías Cremonte, labor lawyer, shared the same view.
In 2019, Minister of Labor, Dante Sica, set the values of the minimum wage through Resolution 6 of August 30. The resolution concluded by urging the National Executive Branch to take the necessary actions to enforce the Minimum Living and Mobile Wage. Mauricio Macri executed this through decree DNU 610/2019 on September 2 of that year.
Article 142 of the Employment Law asserts that the minimum, vital, and mobile wage will be effective and mandatory from the first day of the month following its publication. Exceptionally, the modification can come into effect from the day following its publication. In all cases, the decision must be published in the Official Gazette or in other news outlets within three days to ensure satisfactory dissemination and authenticity of its text.
Consequently, DNU 610/2019, of September 2, 2019, established the first increase in the minimum wage with retroactivity to August 1st.
