By Ken Parks
BUENOS AIRES--Argentine bank employees staged a one-day strike
Thursday to demand a 25% pay raise that could spur similar wage
demands by other unions.
Inflation that most private-sector economists say has been
running at or above 20% in recent years has led the country's
powerful unions to win even greater wage increases.
The strike comes at a sensitive moment for Argentine consumers,
whose cash needs skyrocket during the Christmas and New Year
holidays. A strike by bank workers not only means shuttered
branches, but also the risk that automated teller machines run out
of cash.
Participation in the strike was mixed, with some private-sector
bank branches, including those of Banco Patagonia SA (BPAT.BA,
BPTGF, BPTGY) and subsidiaries of Citigroup Inc. (C) and Banco
Santander SA (SAN, SAN.MC), open for business.
"Tomorrow we are going to work so we aren't blamed for the lack
of money in ATMs," Eduardo Berrozpe, the bank workers union
spokesman, said in a television interview.
The strike went ahead even though the Labor Ministry Wednesday
ordered a 10-day cooling-off period to give the union and banks
more time to strike a deal.
The Labor Ministry said it would fine the union for ignoring its
order to call off the strike.
"We are going to apply all of the fines we can under the" labor
law, Deputy Labor Minister Noemi Rial told Radio 10.
The bank workers union is one of the first unions to hold annual
wage negotiations, which for most sectors of Argentina's heavily
unionized economy take place in March and April. The preliminary
pay raise bank workers typically win in December can set the bar
for wage talks in other industries.
Next year's wage talks could prove to be especially conflictive
as employers and the government try to limit salary increases that
are eroding margins and the competitiveness of Argentine
exports.
But high inflation and a feud between President Cristina
Kirchner and one of the country's most influential union bosses,
Hugo Moyano, will likely make for tense salary negotiations in
2013.
The heavily questioned national statistics agency, Indec, said
12-month inflation as measured by its consumer-price index was
10.6% at the end of November. But most private-sector estimates say
inflation is now around 25%, even though the economy will likely
struggle to expand by 2% this year due to a drought and weak trade
with Brazil.
The government data show wages rose 24.9% on the year in
October.
Write to Ken Parks at ken.parks@dowjones.com
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