The chamber that includes vehicle manufacturers delivered a plan to the government to produce a million units by 2023. It demands a labor reform that modernizes the labor market.

Automotive companies’ members of ADEFA, delivered a document to the government with “initiatives” to promote the sector, within the official program that aims at producing a million vehicles by 2023.

The initiatives include the reduction of logistics costs and of the main supplies, a tax reduction, incentives to obtain new markets and training plans. However, they believe that “the improvement of competitiveness through the increase of productivity and the reduction of labor costs” is a must, and they expect real results during this year.

The so-called “phase 1”, includes the development of versatility in jobs, flexibility when hiring temporary staff, and the development of a framework to outsource activities.

The regional context makes it mandatory to advance quickly, as Brazil has just sanctioned a labor reform to modernize the labor market.

In the “agreement with the union trade” chapter, companies suggest to “define a absenteeism goal of 3%, improving internal control”, and the “implementation of methodologies that increase productivity”, such as “time measurement”.

In the chapter “collective agreement changes”, companies want to “subdivide collective agreements per services” and “enable the development of versatility among jobs and areas”, as well as “revising incentives, prizes, and bonus linked to the achievement of quality, productivity and absenteeism goals” and “include an income level with a lower wage for the corresponding adaptation period”.

In the chapter of “legislation changes”, the idea of “social contributions’ reduction” and the pursuit of “greater flexibility when hiring temporary staff” are highlighted. Automotive companies want to “develop a framework to outsource activities” and “to revise the labor contract law to reduce legal contingencies”. Finally, companies want to move forward in the creation of “incentives to develop apprenticeships programs”.

The Argentinian labor market seems to be driving towards its modernization.