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Ampliación del Sistema de Protección Social en Argentina - Período 2003-2010 1 1 July 2010 Argentina 2003–2009 Labor Policies in Times of Crisis Marta.

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Presentation on theme: "Ampliación del Sistema de Protección Social en Argentina - Período 2003-2010 1 1 July 2010 Argentina 2003–2009 Labor Policies in Times of Crisis Marta."— Presentation transcript:

1 Ampliación del Sistema de Protección Social en Argentina - Período 2003-2010 1 1 July 2010 Argentina 2003–2009 Labor Policies in Times of Crisis Marta Novick Under Secretariat for Technical Programming and Labor Studies

2 Ampliación del Sistema de Protección Social en Argentina - Período 2003-2010 2 2 Presentation Topics Context to the Argentine crisis (2001–2002) Policies for addressing the domestic crisis (2003–2008) International crisis (2008–2009) Labor policies in Argentina Final thoughts

3 Ampliación del Sistema de Protección Social en Argentina - Período 2003-2010 3 3 The 1990s The 1990s & the 2001-02 Crisis

4 Ampliación del Sistema de Protección Social en Argentina - Período 2003-2010 4 4 Post-Convertibility 2003-2008 Industrial policy Withholdings Promotion regimes (software, automobiles, electrodomestics) Promotion of non-traditional exports Non-automatic imports Macro policy Competitive and stable exchange rate Budgetary and external surpluses Encouragement of domestic demand and investment Labor policies Labor institutions Employment policies Income policies Social Security Social policies More universal criteria Direct transfers for vulnerable families National Food Program Remediar: free access to generic medicines Decent work as a policy objective

5 Ampliación del Sistema de Protección Social en Argentina - Período 2003-2010 5 5 Labor policies Labor institutions New legal framework (employment reordering law) Promotion of collective bargaining Recovery of labor inspection – PNRT Mediation of labor conflicts Income policies Wage increases: fixed amounts, minimum wage, and promotion of collective bargaining Increases in retirements and pensions (mobility) and in family allowances Increases in socio-labor plans (families, etc.) Increase in social security coverage (Welfare Inclusion Program) Employment policies PJJHD Training Program (SCE) Employment programs for vulnerable groups (youth, etc.)

6 Ampliación del Sistema de Protección Social en Argentina - Período 2003-2010 6 6 Between 2003 and 2008, employment reported record levels of improvement Formal waged employment Fall in registered employment Registered employment and number of companies Unemployment rate

7 Ampliación del Sistema de Protección Social en Argentina - Período 2003-2010 7 7 Wages and collective bargaining Coverage of collective bargaining Average wage level Number of agreements

8 Ampliación del Sistema de Protección Social en Argentina - Período 2003-2010 8 Evolution of professional training (PT) numbers (provincial, municipal, and sectoral) Source: DNOyFP, SE, meta 2009. 134,931 110,058 13,550 $150,000,000 Active training policies

9 Ampliación del Sistema de Protección Social en Argentina - Período 2003-2010 9 9 July 2010 The international crisis

10 Ampliación del Sistema de Protección Social en Argentina - Período 2003-2010 10 Magnitude of the crisis Worst crisis since 1930. World unemployment rose by 11 million last year, and around 40 million more jobs could be lost by the end of 2009. In the USA, 650,000 jobs were lost during January 2009 alone, raising its unemployment rate from 7.6% to 8.1%. The IMF recently estimated (July 2010) that global output fell by 0.6% in 2009 (–3.2% in the developed nations and +2.5% in developing countries). Estimates forecast global growth of 4.6% in 2010. Global trade also reported a significant fall (–11.3%). The IMF predicts an increase of 9% this year.

11 Ampliación del Sistema de Protección Social en Argentina - Período 2003-2010 11 First thoughts on the crisis Traditional indexes, such as GDP or other indicators of well-being, are not enough and cannot prevent catastrophes or disasters of this kind. The recent work by Stiglitz, Sen, and Fitoussi states that these traditional indicators do not highlight what is most important to us: the well-being of the citizenry, their quality of life, their dignity, and, ultimately, their happiness, which do not necessarily correlate with GDP growth. This underscores two essential issues: Intervention in public policy matters The role of income distribution

12 Ampliación del Sistema de Protección Social en Argentina - Período 2003-2010 12 July 2010 Argentina: Policies during the international crisis

13 Ampliación del Sistema de Protección Social en Argentina - Período 2003-2010 13 Industrial policy Production credits conditional on maintaining employment Support for SMEs Credits for consumption and commerce Non-automatic imports Macro policy Public infrastructure investment program Tax incentives for formalizing workers Nationalization of the retirement system Social policies 1st phase: Increases in social program transfer amounts and in the budget of the National Food Program 2nd phase: Universal per-child allowance ANTI-CRISIS Policy Permanent labor market observatory Labor policies Use of existing institutions Policies to protect jobs Income policies International Crisis 2008–09

14 Ampliación del Sistema de Protección Social en Argentina - Período 2003-2010 14 Protecting jobs and incomes Using existing institutions Clear strategy to maintain labor relations Crisis Prevention Procedure Wage subsidies for companies affected by the crisis (REPRO) Various strategies to extend SCE coverage Greater effort (and incentives) for training policies Income policies: Continuance of collective bargaining Increased minimum wage Once-off fixed amount increase in income (for retirees and minimum-wage earners) Increased family allowances Retirement mobility Labor policies for tackling the crisis

15 Ampliación del Sistema de Protección Social en Argentina - Período 2003-2010 15 Maintaining employment: Major expansion in coverage after the crisis 6.973 6.768 7.950 12.853 16.910 129.411 120.751 182.495 - 20.000 40.000 60.000 80.000 100.000 120.000 140.000 160.000 180.000 200.000 2004200520062007200820092010TOTAL 2003-2010 Other job maintenance programs Interzafra and other seasonal programs Productive recovery

16 Ampliación del Sistema de Protección Social en Argentina - Período 2003-2010 16 Expanded coverage of social protection: Elderly and youth 86% 37% 69% 84% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 1997199819992000200120022003200420052006200720082009 Percentage of beneficiary children and adolescents in the under-18 population Percentage of retirement and pension beneficiaries in the senior population

17 Ampliación del Sistema de Protección Social en Argentina - Período 2003-2010 17 Countercyclical policy in figures

18 Ampliación del Sistema de Protección Social en Argentina - Período 2003-2010 18 Impact of external crises on employment in Argentina 8,0 12,4 13,2 12,2 8,8 13,8 14,5 16,6 6 8 10 12 14 16 18 20 22 Mexican CrisisRussian CrisisBrazilian CrisisGlobal Crisis Pre-crisis rateRate during crisis +4,4 +1,3 +1,4 +0,8 Convertibility regime Productive model 2003 - 2009

19 Ampliación del Sistema de Protección Social en Argentina - Período 2003-2010 19 Final thoughts (i) Change in how responses to the international crisis are oriented (first stage) The role of public policies / state Greater emphasis on employment (maintenance, improved coverage, unemployment, and training) and expanded social protection New role of non-traditional institutions (Labor Ministries / ILO) Heightened role of developing countries (G20) and a broader outlook on the economic crisis

20 Ampliación del Sistema de Protección Social en Argentina - Período 2003-2010 20 Final thoughts (ii) Second stage (European crisis) Some return to adjustment policies (Greece, Spain) Adjustments in labor affairs and reduced spending Potential impact on demand and activity levels Fiscal and monetary policies as sole macroeconomic strategies G20 Toronto, transition

21 Ampliación del Sistema de Protección Social en Argentina - Período 2003-2010 21 Final thoughts (iii) Need to coordinate public policies Ffrench-Davis states that the type of macro-level focus adopted has a decisive impact on the degree of stability, and on how that affects the path of growth and influences the level of equality or inequality found in domestic markets. Recovery from a crisis is impossible if social and labor objectives are not placed at the center of economic policy.

22 Ampliación del Sistema de Protección Social en Argentina - Período 2003-2010 22


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