Argentina’s Unions Walk Out of Wage Council, Leaving Milei to Set the Minimum Wage by Decree
ARGENTINA · ECONOMY
Key Facts
—What happened: Argentina’s main union federations walked out of the wage council and rejected the employers’ offer as derisory.
—The gap: Employers offered about 400,000 pesos (US$264); the CGT demanded 911,202 pesos (US$602) immediately.
—The stakes: The minimum wage is now 376,600 pesos (US$249) a month and anchors benefits and informal pay across the economy.
—The catch: With no deal, President Javier Milei’s government will set the new minimum wage unilaterally, as it did in November 2025.
—The escalation: The unions will file a fresh complaint with the International Labour Organization over the lack of real tripartite dialogue.
—What comes next: The government must publish the new wage floor within days; the ILO expects a report by 1 September.
Argentina’s wage council collapsed without agreement this week after the CGT and both CTA union federations walked out, rejecting an employer offer endorsed by the government — so the Milei administration will once again set the minimum wage by decree.
A walkout before the plenary even began
The body in question is the National Council for Employment, Productivity and the Minimum Wage, known in Argentina simply as the wage council. It brings together government, unions and employers to fix the legal pay floor.
The CGT, the country’s dominant union confederation, and the two rival CTA federations joined the technical commission on Thursday. They then left before the plenary session, calling the employer proposal insufficient and the meeting itself a staging.
“Without real dialogue there is no possible agreement,” the CGT said in a statement afterwards. The federation complained that the Labour Secretariat held the meeting online and sent no senior authorities.
The session was chaired by Labour Undersecretary Claudia Testa. The Ministry of Human Capital defended the virtual format, arguing it keeps a clean record of each side’s positions.
Half a million pesos apart
The numbers explain the rupture. Employers opened at close to 400,000 pesos (US$264) a month, with monthly increases that would reach roughly 468,000 pesos (US$309) by April 2027.
The CGT asked for an immediate jump from the current 376,600 pesos (US$249) to 911,202 pesos (US$602). Its plan then climbs in steps to 993,300 pesos (US$657) in December.
The opening positions were more than 500,000 pesos (US$330) apart, a gap no negotiation round closed. After a recess in which nobody moved, the government called the plenary and announced it would fix the new value itself.
That has become the pattern under President Javier Milei. The current pay floor was also set by the executive after the November 2025 round of the council failed.
Why a wage few people earn still matters
Only a minority of formal workers earn exactly the minimum wage, but its reach is far wider. It sets the base for unemployment benefits and anchors pay across Argentina’s vast informal economy.
For the Milei government, a low settlement is also a disinflation tool. With monthly inflation near two percent, a generous wage floor would feed directly into prices and into the exchange-rate script.
For the unions, the figure is a symbol of lost purchasing power after years of inflation above 100 percent a year. Their demand of 911,202 pesos is calibrated to a family’s basic consumption basket, not to the inflation index.
The road now runs through Geneva
The CGT and the CTAs announced they will take the case back to the International Labour Organization, the United Nations agency for labour standards. They argue the government offers no effective space for tripartite negotiation.
The timing is not accidental. The ILO had asked Buenos Aires to report by 1 September on measures to guarantee real bargaining between the state, workers and employers.
The federations will also demand the reactivation of the council’s other commissions, which cover employment, training and productivity. Those bodies have not met in a meaningful way for years.
What to watch from here
The first marker is the decree itself, expected within days. The number the government chooses will signal how much inflation-fighting it is willing to trade for social peace.
The second is the union response on the streets. The CGT has staged national strikes against Milei before, and a decree near the employer offer would raise the pressure for another one.
The third is Geneva, where an adverse ILO reading would hand the opposition a fresh argument. It would not change the wage, but it would raise the political cost of setting it alone.
Frequently Asked Questions
What is Argentina’s wage council?
It is the National Council for Employment, Productivity and the Minimum Wage, a tripartite body of government, unions and employers. It sets the legal minimum wage and updates linked benefits such as unemployment insurance.
Why did the CGT and CTA walk out?
They rejected the employer offer, backed by the government, of about 400,000 pesos (US$264) a month as derisory. They also protested the virtual format of the meeting and the absence of senior labour officials.
What is the minimum wage in Argentina now?
It stands at 376,600 pesos (US$249) a month, set by the government after talks failed in November 2025. The CGT demanded an immediate rise to 911,202 pesos (US$602).
Who decides the new floor if there is no deal?
The executive branch does, by decree. President Javier Milei’s government announced it will fix the new floor itself, as it did after the failed November 2025 round.
What will the unions do next?
They will file a new complaint with the International Labour Organization over the lack of real tripartite dialogue. The ILO had asked Argentina to report on bargaining guarantees by 1 September.
Connected Coverage
The wage fight lands in the same week Argentina’s markets crossed a symbolic line: read our week-close report on the peso above 1,500 per dollar and the political backdrop in Milei’s re-election bid comes as Argentina’s risk climbs.
Sources: Grupo La Provincia, El Submarino Jujuy, CGT statement, Ministry of Human Capital.
This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error
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