The call to businessmen to talk of prices and wages It is in its infancy, according to several executives consulted. The ministers Matías Kulfas (of Productive Development) and Claudio Moroni (Labor) will be in charge of inviting company executives and sector representatives to this meeting. Among the possible attendees, there was no news until Thursday afternoon. From official offices, it transpired that the meeting would be the Wednesday.
Representatives of the food, pharmaceutical, energy, durable goods, banks and businesses were consulted about an invitation from the Executive Branch, but they still had nothing formal on their agendas, they explained. Clarion He asked what they are interested in raising in the face of that meeting.
Entrepreneurs first want to hear the government’s proposal before making public expressions. “The prudent thing is to know what the Executive Power wants to raise and then elaborate our positions,” said a leader of the Argentine Industrial Union (UIA). In the same sense, they excused themselves in other sectors.
Other businessmen were tougher and directly questioned the meeting. “It seems to me that it is an idea of the Government, but that there is still nothing firm,” said a bank entrepreneur.
The ideal of the Executive Branch is that wages beat inflation during 2021, to achieve an increase in consumption in an election year. “As an idea it sounds good, we all want there to be more economic activity”, describes half a dozen of those consulted. “The issue is how, I think there may be differences,” they observe.
The reality of the different sectors seems to be too heterogeneous to reach a single answer.
Durable goods manufacturers and industry they note the majority of increases in their activity. But they complain about restrictions on imports, or rising costs in transport and logistics. “To know how much I can pay in increase, I first need to establish what the cost of the products I sell will be. In my sector – white line – parts are missing every day, due to restrictions on imports. It is difficult for me to predict my sales, with which I would pay the increases, if I do not have access to my inputs, or I do not know their cost ”, reflects an industrialist of that category.
“If the“ Maximum Prices ”continue, it is difficult to establish the cost variables and their reflection in the final prices. You are seeing an increase in transportation costs, but the Executive Branch considers that thousands of food and beverages should continue with prices slightly higher than those of March 2020. In these conditions, it is difficult for me to imagine a salary agreement, “they said in that sector.
The uncertainty affects other relevant costs for companies, such as energy (electricity and gas). The merchants speak of the same. The price of the official dollar or “blue” is also observed to evaluate possible salary increases.
“It all depends on the government’s approach. We are still asking you to help us pay salaries through a program like ATP or something like that. If we cannot pay the current ones, we would be very far from an increase “, they comment between owners of suppliers of fuels.
That skepticism it is shared by merchants and SMEs. “I have a line that is for mass consumption companies that sell to households. It’s okay, you can pay a raise. I have another that sells to restaurants and hotels. He’s very bad. Can’t even afford current salaries. I don’t think there is a single formula ”, says an entrepreneur who previously worked in a multi-company and now has opened his own factory.
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source https://pledgetimes.com/the-businessmen-have-not-yet-received-the-invitation-from-the-government-and-show-caution-in-the-face-of-the-meeting/
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