Argentina issues decree making it harder for businesses to fire workers

The new “Decree of Need and Urgency” says in cases of dismissal without just cause during the term of the decree workers will be paid double the normal exit package. (File/AFP)
Updated 14 December 2019

Argentina issues decree making it harder for businesses to fire workers

  • Current inflation in the country is above 50%
  • New economy minister said the new administration will emphasize economic growth over the deficit reduction program

BUENOS AIRES: Argentine workers fired without just cause over the next 180 days will be paid double the normal exit package under a decree announced over the weekend, as the new government breaks with the pro-business stance of the previous administration.
The “Decree of Need and Urgency” says in cases of dismissal without just cause during the term of the decree, “the affected workers will have the right to receive double the corresponding compensation in accordance with current legislation.”
Peronist President Alberto Fernandez was sworn in on Tuesday, promising an end to outgoing leader Mauricio Macri’s pro-business policies, as inflation roars at above 50%, poverty increases and economic growth sputters.
The new economy minister on Wednesday said Macri’s fiscal tightening measures had failed, and that the new administration would emphasize economic growth over the deficit reduction program that was at the heart of Macri’s push to re-integrate Argentina with the international financial markets.
Argentina’s unemployment rate rose to 10.6% in the second quarter of 2019, a percentage point higher than a year earlier, the government said in a press release announcing the decree.
Young people were especially hard hit, it said, with young women suffering a jobless rate of 24%.
“By decision of President Alberto Fernandez, the public emergency in occupational matters is declared in view of the need to stop the aggravation of the labor crisis,” the press release announcing the decree said.


Getting more women into leadership positions top priority: CEO

This June 23, 2018 photo, shows a general view of Riyadh, Saudi Arabia. (AP)
Updated 18 January 2020

Getting more women into leadership positions top priority: CEO

  • Saudi Arabia is focusing on the Business 20 (B20), making this one of the key engagement groups. Women in Business will be Saudi Arabia’s signature topic

RIYADH: The boss of one of Saudi Arabia’s biggest banks says that getting more women into leadership positions is a top priority.
Samba CEO Rania Nashar chairs the action council for Women in Business created by the Business Twenty (B20), which is the official G20 dialogue with the business community. It represents the global business community across all G20 member states and all economic sectors.
She said the council was set up to boost women’s particpation not only in business but also in global leadership positions.
During the launch of the B20 in Saudi Arabia this week, Nashar highlighted the under-representation of women in the economy.
“There is a gap of 27 percent between male and female workers; 75 percent of males are part of the labor force while only 48 percent of females are working,” she said.
She said it was important not to just talk about women as workers but as business owners.

FASTFACT

Saudi Arabia will host the 15th G20 Summit in Riyadh on Nov. 21-22, 2020.

“That’s why entrepreneurship is very fundamental to our task force,” she said.  “The majority of the finance development programs have incentives for giving loans to females; however, despite the fact that many large borrowers are females, the amount of loans granted to them is far below what is granted to males,” she added.
Nashar said that two-thirds of female business founders feel that they were not taken seriously by investors when they pitch for investments. They also feel that they are treated differently from their male counterparts.
Saudi Arabia will host the 15th G20 Summit in Riyadh on Nov. 21-22, 2020. The Kingdom is focusing on the Business 20 (B20), making this one of the key engagement groups. Women in Business will be Saudi Arabia’s signature topic.