Since the military took power in 1976, there has been a systematic effort to undermine the power of the labor movement, which was consolidated during the rule of populist leader Juan Domingo Per6n. Orlando Bustos, a former leader of the Textile Worker's Union, told me in late 1997 that mem- bership in his union has decreased dramatically, from 100,000 in 1975 to approximately 12,000 today. His union had been a powerhouse in the 1950s and 1960s. But today, thanks to the liberalization of the Argentine economy, most of the jobs in the textile industry have disappeared as local manufacturing has been replaced by imports from Taiwan and Korea. Union membership has declined as a result, while infor- mal labor had increased dramatically. Bustos' story could be repeated by countless other labor leaders. It is impossible to deny that the liberal- ization of the economy has reshaped power relations in Argentina. The country's once powerful labor move- ment, which prior to 1989 carried out an average of two general strikes per year, has lost virtually all its clout. The central problem is structural un- and underemploy- ment, which is estimated at 40% of the economically active population. Daniel Cieza teaches labor law at the University of Quilmes and sociology at the University of La Plata. His most recent book is La verguenza de haber sido, el dolor de ya no ser. Teoria y prdctica de la politica social en la periferia: Un estudio del ajuste neolib- eral (Editorial Tierra del Fuego, 1997). He is a member of FREPASO and currently a deputy for Buenos Aires province. Translated from the Spanish by Mark Fried. The dire situation facing Argentine labor is not solely the result of growing unemployment. Since the military coup that overthrew the government of Isabel Per6n in 1976, there has been a systematic effort to undermine the power and the gains of the labor movement that were consolidated during the rule of populist leader Juan Domingo Per6n. The generals outlawed collective bargaining and jailed or killed hundreds of union lead- ers, setting the stage for a series of management- friendly reforms that have virtually emptied Argentina's historic labor legislation of its original con- tent. Ironically, it has been President Carlos Menem- a member of the party of Per6n-who has carried out the most extensive labor counter-reform in Argentine history. Menem's attack on labor-which in many ways seems like an attempt to return to the horrific labor con- ditions of the nineteenth century-has not only under- mined the social base of the labor movement, but has in fact pushed through a structural reorganization of work itself. Stable, long-term employment has been increas- ingly replaced with term-employment contracts and informal work that offer workers little stability and no social-security benefits. These changes in the organization of work have dra- matically altered the terrain on which the struggle for workers' rights takes place. Until the late 1970s, work- ers could exert pressure on management by lowering 20 NACIA REPORT ON THE AMERICASREPORT ON ARGENTINA Retired and unemployed workers protest govern- ment cutbacks and priva- tizations in downtown Buenos Aires. occupational safety precautions in the workplace and a decline in product quality as a result of such conditions. If the government's goal is to increase Argentina's ability to compete within the international economy, then its poli- cies are leading the economy in the wrong direction. production levels in the workplace or stopping work altogether. Over the past 15 years, the movement has had to move its protests outside the workplace and develop new strategies, such as blackouts and blocking traffic, in order to fight back against this all-out assault on labor. The Argentine government insists that "labor flexi- bility" is the key to job creation, arguing that Argen- tina's labor costs are too high. The elimination of work- ers' benefits, goes the argument, would lead to greater insertion into the world economy, and thus to economic growth and job creation. Yet these measures have not accomplished their objectives. The practical effects of the government's anti-labor policies have included growing work instability, growing despotism on the part of management, the deterioration of hygiene and VOL XXXI, No 6 MAY/JUNE 1998 Until the late 1970s, the labor movement in Argentina devel- oped in the context of very low unemployment. Under these conditions, trade unions were able to exert strong and sustained pressure on the state for improved labor legislation, which resulted in Latin America's most progressive labor code. In 1915, the government approved extremely advanced occupa- tional-safety and workplace-accident legislation drawn from European experiences. Some 15 years later, the eight-hour day was established and limits were placed on overtime and increased monthly work schedules to protect employment during the Great Depression. During the period of classic Peronism, which lasted from 1945-1955, labor legislation was strengthened and a centralized model of trade unionism with strong links to the state emerged. Following the 1955 military coup which ousted Per6n, the labor movement played a key role in what became known as the Peronist resistance, 21REPORT ON ARGENTINA staging a series of general strikes against the military regime. During these years, labor struggles continued alongside demands for the return of Per6n. When Per6n did return to power in 1973, the labor movement's struggle for legislative reform culminated in the passage of the Labor Contracting Law. Under this law, collective-bargaining agreements could be negoti- ated for entire industries, rather than only for individual companies or plants, and industry-wide agreements could not be superseded by the latter. The Labor Con- tracting Law was the most progressive of its kind in Latin America-comparable only to Mexico's Federal Labor Law-particularly in terms of individual work- ers' rights. The Argentine law, moreover, unlike its Mexican counterpart, was actually enforced thanks to the active presence of stewards in the workplace. Although the character of the labor movement changed considerably following the emergence of Peronism-and the corporatist populism it put into practice-the movement still retained elements of the anarcho-syndicalist tradition which had predominated before World War II. While such historical changes have deeply affected the movement, a series of features have persisted over time. The fight for better wages has always been at the center of labor struggles, and there has always been a tendency to exert direct pressure on the state, making the general strike a primary strategy. Marxist-Leninist ideology, moreover, has always been marginal within the movement, which has also been characterized by extensive organization within the workplace via the corps of stewards and internal com- missions. In sum, during the long period of high employment between 1940 and 1975, progressive labor legislation was consolidated alongside a strong centralized trade union movement which exerted constant pressure on management and on the state, primarily around wage issues. The workers' struggle had a direct influence on the approval of industry-wide collective bargaining agreements, which reached their peak around 1975. The labor movement was also involved in the creation of social-development strategies, particularly during the Peronist governments, bringing workers into alliances with business elites. Pacts between the General Labor Confederation (CGT) and the General Economic Confederation (CGE), the organization of small and medium businesses, were also common dur- ing this period. With the military coup of 1976 and the brutal repres- sion that it unleashed, the gains of organized labor were gradually overturned, sending the movement into a deep crisis. During the years of the dictatorship (1976- 1983), one-third of the most progressive clauses of the Labor Contracting Law were eliminated, collective bargaining was sus- pended, the most active union stewards were persecuted and jailed and the major unions were shut down. At the same time, the first mea- sures of what would later become a pro- found reorganization of work itself were implemented. When constitutional rule was restored in 1983, collective-bar- gaining rights were reinstated and unions could once again func- tion, but the gutting of the Labor Contracting Law was never re- versed. By this time, the neoliberal model was quickly gaining ground and its propone The proliferation of "garbage contracts "-short- term employment contracts lasting from three to six months--creates a continual turnover of the labor force, making union organizing a difficult task. nts utilized the anti-labor reforms of the military regime to consolidate their hegemony. In the political and cultural climate of the early 1980s, there was little room for either strong labor legislation or powerful unions. In their absence, the neoliberal mission to atomize the trade-union move- ment, drain labor legislation of any real content and reduce labor costs through "flexible" contracting prac- tices met with few legal obstacles and comparatively little organized resistance. With the election of Carlos Menem to the pres- idency in 1989, a vicious labor counter- reform was set in motion which mirrored and legitimized what was already occurring on the shop floor. The first measure was the enactment of the National Employment Law which, drawing on similar legislation in Spain, set out to create new modalities for term-employment contracts. This fundamentally altered the original structure of the Labor Contracting Law, which had only allowed term contracts under exceptional circumstances. Although the stated objective of this new law was to create more jobs, the result was the opposite. Unemployment increased dramatically after 1992, reaching almost 20% by 1995, three times what it had been in 1991. According to the latest figures released by the National Institute of Statistics and Census (INDEC) for 28 urban centers, the rate of open unem- ployment-the percentage of people who are actively 22NACLA REPORT ON THE AMERICAS NA A REPORT ON THE AMERICAS 22REPORT ON ARGENTINA A march in "defense of jobs" protests the dismantling of the manufac- turing sector of the economy. seeking work and are unable to find it at the time of the census-is 13.8%. But if we add rural laborers who are not covered by the social-security system, the urban informal sector, and those who have given up looking for work altogether, that figure jumps to over 40%.1 A study by the Buenos Aires Institute of Analysis and Projects, a research center connected to the National Solidarity Front (FREPASO), suggests the figure is even higher, estimating that 51% of the economically active population has problems finding adequate employment. 2 The second step in Menem's counter-reform was to modify workplace-accident legislation by reducing the amount of cash benefits available to workers. In some cases, these were turned into occasional payments and only those illnesses named on an official roster of dis- abilities were covered. Workers no longer had the right to sue for damages in civil court, and a cap of $55,000 was imposed for death or total disability as a result of an accident in the workplace. This law turned out to be even more reactionary than the 1915 accident legisla- tion which at least allowed workers to sue for damages. The government then established a differential system of labor regulations for small and medium-sized busi- nesses, which allows these companies to temporarily dismiss employees on cost-reduction "vacations" on shorter notice, to pay annual salary supplements in three installments, to negotiate severance packages based on systems of previous savings and to simplify the filing of term contracts. Curiously, the law defines small and VOL XXXI, No 6 MAY/JUNE 1998 medium-sized businesses as those with up to 120 employees, and allows even bigger companies to qualify as long as the figure is arrived at through a collective agreement. Although the average number of employees in such companies is around 50, there is already a prece- dent of a "medium-sized" company with 300 workers. A fourth step was to create a system of probationary contracting for periods of up to six months, and to implement new forms of term contracting for women, disabled workers, those over 40 years of age, war vet- erans, apprentices and student interns. With these reforms, the traditional Labor Contracting Law has been completely gutted. Nearly 90% of new hires are now for term positions, when in fact permanent jobs ought to be the norm. With the changes in workplace- accident legislation and the resulting drop in the cost of legal suits for companies, health and safety conditions have deteriorated dramatically. According to official statistics, 97% of employers do not comply with health and safety regulations. Argentine law is similar to U.S. law in that it gives the employer control over health and safety concerns. Although the law is quite detailed, it is rarely enforced. In the context of structural unemploy- ment and changes in regulations concerning occupa- tional hazards, there is less incentive for workers to demand compliance with safety standards. In the wake of this counter-reform, structural job instability has become the central issue for the Argentine labor movement. Even though open unem- ployment has fallen since 1995, a series of problems 23REPORT ON ARGENTINA related to job instability have emerged. Although the principal objective of the National Employment Law was to reduce unregulated and unreported labor--for which workers are paid under the table and receive no health or pension benefits--the trend over the past sev- eral years has been the opposite. The law imposes stiff penalties on unreported work, yet small business own- ers rarely comply with these regulations, figuring that legal actions against them will get caught up in lengthy judicial proceedings. Ac- cording to official statistics, about 30% of employees do not receive health or retire- Dissident trade t ment benefits. 3 Movement of A Another problem is the pro- liferation of short-term con- have criticized c tracts, known in the labor movement as "garbage con- the CGT hierarc tracts," which last from three independence t to six months and have no provisions for severance pay- gover ments in the event of layoffs. The labor force is continually rotated, making union orga- nizing difficult. Wages and working conditions have also been deeply affected by these pro-business reforms. Generally, large companies combine a small number of stable, well-paid production workers with informal or short-term workers in areas like mainte- nance or marketing. There have been noticeable changes in the production process as well. Speed-ups and longer work days are much more common than before. Workers are increas- ingly being required to do more. Now, for example, a machinist must also do clean-up in the workplace--a task that was once performed by a maintenance worker. The impact of these changes on the level of employ- ment should not be underestimated. A study carried out by La Plata National University found that in breweries and glass factories, production has increased despite a notable reduction in the workforce. In the largest brew- ery, while the stable workforce was cut from 1,500 in 1985 to 600 ten years later, beer production doubled without any significant technological changes. Finally, the power and authority of bosses and supervisors have been strengthened in ways which have directly under- mined the power and influence of shop stewards, lead- ing to a rise in the mistreatment of workers. espite the troubling socio-economic trends fac- ing Argentina today, it would still be possible to reverse Menem's counter-reform. This is an issue that affects not only wage-earners, but all Argentines, since a country with an unstable work force can hardly compete in today's international economy. The primary responsibility lies with the trade-union movement itself, which must break with its double legacy of dependence on the state and a rigid emphasis on wage concerns. There are already encouraging developments, such as the formation of the Movement of Argentine Workers (MTA), a dissident current within the CGT which has garnered support in the strategic transport sector (truck- ers, bus drivers, air traffic controllers, etc.). This cur- unionists from the raentine Workers 1, r n rent has criticized the CGT hierarchy's corruption and lack of independence from the Menem government. corruption within Another important develop- ment is the founding of an y and its lack of alternative labor federation, rom the Menem the Argentine Workers Central (CTA), led by iment. administrative, educational and judicial employees. In practice, these dissident cur- rents work together. Because traditional strikes or other forms of struggle within the workplace are very difficult to carry out successfully, they organize national days of protest in which unem- ployed and retired workers, students and opposition political groups can rally in support of labor's demands. Dissident unionists must also develop links with the political opposition, particularly the center-left Alliance for Jobs, Justice and Education, the main winner in the 1997 legislative elections. A number of important MTA and CTA union leaders have already joined the ranks of the Alliance. Today, the Alliance and the trade unionists of the MTA and CTA are discussing common strategies to counter the final phase of the labor counter-reform being launched by the ruling party-the reduction of severance payments. What is left of the historical protections stipulated in Argentina's labor code must be defended and modern- ized to increase workers' participation and strengthen labor in its negotiations with management. Current leg- islation should be reformed in order to eliminate corpo- ratist privileges and the fat-cat bureaucrats they protect. It is also imperative that labor leaders and progressive sectors oppose all new attempts to undermine the labor code. A joint strategy between labor and the Alliance must consist of concrete proposals to deal with unem- ployment, working conditions and occupational safety. This is the next crucial step to building a more democ- ratic, participatory and dynamic labor movement. Argentina's future, to a large extent, will be forged in these struggles. Argentine Labor: A Movement in Crisis 1. Instituto Nacional de Estadisticas y Censo (INDEC), Encuesta Permanente de Hogares (Buenos Aires: INDEC, 1997). 2.INDEC, Encuesta Permanente de Hogares. 3. INDEC, Encuesta Permanente de Hogares.
