The Executive will put to a vote this Monday the limited version of the Base Law, with labor reform and fiscal package included. After last-minute concessions, the project arrived in order, although the specter of its approval being frustrated – as happened in February – still haunts and the ruling party does not want to leave anything to chance, neither in the text nor in the procedure of the session. Emergencies, privatizations, elimination of the pension moratorium and labor reform These are some of the issues that run through the new version of the project promoted by the Government.
The general approval of the text is discounted but there are articles – such as the Income Tax and the Investment Regime – that are fair votes, while the opposition will put pressure on the Tobacco chapter and the elimination of the union quota within the Labor Reform.
What are the points that the Deputies will discuss this Monday?
The new project has 232 articles in total.
It is declared at public emergency in administrative, economic, financial and energy matters for a period of one year.
Powers are delegated to National Executive Branch in the terms of article 76 of the National Constitution.
The Government must inform “monthly and in detail to the Honorable Congress of the Nation about the exercise of the delegated powers and the results obtained.”
As bases for legislative delegations, there are: improve the functioning of the State to achieve transparent, agile, efficient, effective and quality public management in caring for the common good; reduce the oversizing of the state structure in order to reduce the deficit, make spending transparent and balance public accounts; and ensure effective internal control of the National Public Administration in order to guarantee transparency in the administration of public finances.
The Executive is prohibited from intervening “the national universities, the bodies or agencies of the Judicial Branch, Legislative Branch, Public Ministry and all entities that depend on them,” At the same time, it “will not be able to order the dissolution” of a group of organizations such as Conicet, Anmat, INCAA, CONAE, ENACOM, INTA, among others.
Regarding trust funds, the PEN is authorized to “modify, transform, unify, dissolve or liquidate” the same, but it is clarified what should be done with the financing sources. The Trust Fund for Residential Gas Consumption Subsidies, created by Law 25,565, is excluded from the list.
In the privatization chapter, in the cases of Nucleoeléctrica Argentina Sociedad Anónima and Yacimientos Carboniferous Río Turbio, it may be “simply organize a shared ownership program and place a class of shares for that purpose” and “incorporate the participation of private capital, with the National State having to maintain control or majority participation in the social capital.”
Subject to total privatization are Aerolíneas Argentinas, Energía Argentina, Radio y Televisión Argentina and Intercargo SAU; and in the privatization/concession scheme AySA, the Official Mail, Belgrano Cargas, Sociedad Operadora Ferroviaria and Corredores Viales appear.
“The privatization process must be developed in accordance with the principles of transparency, competition, maximum competition, open government, efficiency and effectiveness in the use of resources, publicity and dissemination,” reads one of the articles about the process in which the Bicameral Privatization Monitoring Commission, the AGN and the SIGEN will also take part.
The Government included in this new version the repeal of Law 27,705, on the Pension Debt Payment Plan, enacted in February 2023, better known as the pension moratorium so that those who do not have the necessary contributions can access a retirement. Thus, the moratorium is eliminated, but at the proposal of the dialogue opposition the creation of a “Proportional Retirement Benefit” for those people who have reached 65 years of age and do not meet the necessary requirements.
The promotion of registered employment is planned. “Employers may regularize current labor relations in the private sector that began prior to the date of enactment of the law.”
“The regulations will determine the forgiveness percentages to be applied, which in no case will be less than 70% of the amounts owed. Incentives may be established for the cancellation of the cash obligation and special benefits for Micro, Small and Medium Enterprises,” he adds.
The articles also indicate that the workers included in the regularization They will have the right to compute up to 60 months of services with contributions or the smallest number of months for which they are regularized, calculated on a monthly amount equivalent to the Minimum, Vital and Mobile Wage.
The project provides for modifications to the Public Employment Law; and an energy chapter with reforms to the Hydrocarbons Law and Natural Gas Law.
The creation of an Incentive Regime for Large Investments (RIGI) is proposed, which iIt includes a series of tax and customs benefits for national and foreign companies that invest in projects over 200 million dollars.
Labour reform
Elimination of fines for employers for having unregistered workers.
The trial period is increased to six months and it is determined that it may be up to eight months in companies with six to 100 workers, and up to one year in companies with up to five workers.
Labor termination fund: Through a collective labor agreement, the parties may replace the compensation provided for in article 245 of Law 20,744 with a labor termination fund or system in accordance with the parameters established by the national Executive Branch. Employers may choose to contract a private system at their own expense, in order to pay for the compensation and/or the sum freely agreed between the parties.
The figure of “collaborators” is introduced in companies with up to five “independent” workers to “carry out a productive enterprise.” It refers to an “autonomous relationship, without a link of dependency between them, nor with the people contracting the services or works and will include, both for the independent worker and for the collaborating workers, the individual contribution of a monthly fee that includes the contribution to the Pension Regime, the National Social Works Regime and the National Health Insurance System and the Occupational Risk Regime, under the conditions and requirements established by the regulations.”
What topics were excluded from this new Bases Law
Banco Nación was removed from the privatization list.
The section referring to the consolidation of public debt from the Sustainability Guarantee Fund was removed.
The section on internal taxes on tobacco was removed.
The chapter on defense of competition was eliminated.
What are the dissidences of the dialogue blocs that will demand in the venue
Internal taxes on tobacco.
Elimination of mandatory contributions to unions.
Consider the INTI, the Music Institute and the Theater Institute within the list of organizations that the PEN will not be able to intervene.
Lower investment amounts required for MSMEs to access the RIGI.
With information from Parliamentarian
2024-04-28 12:35:16