What should the new minimum wage have to recover the virtuous value?

The SMVM is imperative, protective and inaccessible, and is an immediate consequence of the order of public work. Fixation of S.M.V.M. This task is the responsibility of the National Council for Employment, Productivity and Living Subsistence and the Mobile Wages of the Ministry of Labor of the Nation.

The SMVM, currently, since December is located $ 11,300 with an increase of $ 11,900 since March and in June $ 12,500.

Now, it turns out that the government understood that there was a delay in the minimum wage and that "We must find a way to correct", according to the minister Dante Sica. But the fact is that they intend to correct with an increase not exceeding 30% for the minimum wage $ 16,250when the gondolas and bread, it is the least that one can say, indicate that it is necessary at least that the worker buys his basic family basket $ 31,150; an increase of almost 150%.

In real terms, we have 40% of the drop in supplies that the base salary must have in a population.

To determine the salary, the National Council of Employment (renamed informally Salary Council)does not refer to compliance with Article 14 bis of the National Constitution and Article 135 of Law No. 24.013 (National Employment Law).

If we take into account the escalation of the dollar after the STEP, during the dollarization of the SMVM, Argentina has a minimum wage of 208 USD, well below 278 USD for Peru; Bolivia: $ 307; Paraguay u $ s336; Uruguay: 424 dollars and Chile, with 434 dollars.

The loss of purchasing power and the transfer of the rising dollar to the gondolas are devastating for the country. Similarly, declining consumption and job loss will lead to a social decline and a deterioration of real wages by comparing the basic basket and poverty rates.

In recent weeks, the CGT has resulted in a 140% increase in the SMVM to reach the baseload threshold. Situation that the government of Mauricio Macri rejected and Counter is offering 30% for the second half.

In percentage terms, the real fall in wages in 2019 will be between 20% and 40%, with an inflation rate of 55.8% YoY

In other words, the SMVM has lost in recent years any virtuous value as a reference for the labor market and consumption, because the national government has manipulated it. "Gradually" as a tool for adjusting wage demands.

The use of the SMVM as a wage anchor violates legal provisions and further separates it from its worker guarantee function the minimum remuneration required to provide adequate food, decent housing, education, locker rooms, health care, transportation and recreation, vacations and supplies.

In turn, it is further and further away from the amount that the state itself considers a poverty line for a family group ($ 31,148). And not to mention being above the amount required to access the minimum of food needed to avoid indigence.

We will see what happens in the Salary advice and if the aspirin they intend to give the 3 million workers who will benefit from this measure, it will result in an effect that will relieve so much sorrow not only in front of the gondolas, but also face this painful reality lived today in Argentina.