Argentina Construction Workers Strike Over Unpaid Wages ; Government Proposes Trust Fund Solution

Argentine construction workers strike over unpaid wages as economic crisis deepens, with businesses struggling and government's solutions facing delays.

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Mazhar Abbas
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Argentina Construction Workers Strike Over Unpaid Wages ; Government Proposes Trust Fund Solution

Argentina Construction Workers Strike Over Unpaid Wages ; Government Proposes Trust Fund Solution

Construction workers in Argentina have gone on strike over unpaid wages from March, as the country's economic woes continue to impact businesses and workers. The government has proposed a solution involving a trust fund to pay the overdue salaries, but workers are facing a delay of 6-9 months before receiving the payments.

Argentina's factories and small-to-medium enterprises (SMEs) are struggling amid high inflation, shrinking consumer demand, and the government's austerity measures. Economic activity has declined across sectors like construction, manufacturing, and retail, with many businesses unable to pay salaries or rent. Some SMEs have had to lay off staff and reduce production to stay afloat.

Why this matters: Argentina's economic troubles are having a profound impact on workers and businesses, with strikes and layoffs becoming more common. The government's proposed solutions, such as the trust fund for construction workers, may provide some relief but also highlight the severity and duration of the crisis.

The International Monetary Fund (IMF) has forecast Argentina's economy to contract by 2.8% in 2024 before rebounding in 2025. President Javier Milei's libertarian government has implemented an austerity program, slashing subsidies and leading to job losses in the public sector. Some business owners are calling for regulations to protect domestic industries and ensure fair competition, rather than the current policies of deregulation and trade liberalization.

A spokesperson for the striking construction workers union stated, "We cannot continue working without pay while facing rising costs of living. The government's trust fund proposal is a step in the right direction, but the 6-9 month delay is unacceptable. We need immediate solutions to feed our families and pay our bills." The strike is expected to continue until a satisfactory agreement is reached between the workers, employers, and the government.

Key Takeaways

  • Construction workers in Argentina strike over unpaid wages since March.
  • Argentina's factories and SMEs struggle with high inflation, shrinking demand, and austerity.
  • Government's trust fund proposal to pay workers delayed by 6-9 months.
  • Argentina's economy forecast to contract by 2.8% in 2024 before rebounding.
  • Workers demand immediate solutions to meet rising costs of living.