Free-market Milei to seek unions’ help for one-million-peso wage floor?

President Javier Milei's government is proposing a collective wage bargaining floor of one million pesos per month in Argentina, aiming to increase purchasing power for workers. Currently, the minimum wage stands at 376,600 pesos, a figure far below typical wages resulting from collective bargaining. This new initiative is part of the government's innovative strategy for wages, instead of substantially raising the minimum, the government believes that collective bargaining – a private process where workers and employers negotiate – has the potential to make a significant impact.

The government argues that a higher wage floor will spur consumer spending and help control inflation without imposing any extra financial burden, as it would stem from an inherent private agreement. As Argentina gears up for minimum wage talks in the latter half of the year, the government is eager to gauge the extent of market intervention that can effect a positive shift.

The Labour Department is reportedly advocating for a gross pay floor of 1.07 million pesos, translating to a net income of 860,000 pesos. However, Jorge Sola, a CGT secretary-general, is skeptical about these claims, suggesting it might be a government-led operation. Sola contends that collective bargaining should be freely negotiated between the two parties without any predetermined limits to curb inflation.

This is because such restrictions could diminish purchasing power and consumer spending, propelling families into debt. According to Empiria consultants, real wages in June decreased by 4.1 percent compared to mid-2025 and by 10.9 percent compared to the first three quarters of 2023.