Trade Unions Argentina

Trade Unions are organizations that represent the interests of workers in negotiations about improving wages and working conditions with employers and the government. They have played strong roles inour nation. Argentina’s largest trade unions associations are the CGT (Confederacion General del Trabajo) y la CTA (Central de Trabajadores de la Argentina).

-Wages and Trade Unions

Throughout the years, trade union’s main objective has always been to establish a worthy salary. Once they became more popular and attracted more followers, their influence increased, as well as, their power.From then onwards, their requirements and demands became more pretentious. The idea of establishing a worthy salary was gone and high minimum wages were claimed. By knowing that many workers belongedto trade unions, firms, in order to maintain their profits, could either accept their petitions and rise their prices or reduce their number of workers and do not change the prices of the products.If prices rise, demand is likely to fall since inflation would take place because prices would rise (unless the product is inelastic) without having an increase in the quantity offered or value of theproduct. Making the demand curve shift to the left because of a fall in demand, supply is likely to fall as well, because producers would not have many workers producing good and services that nobodywould buy, so unemployment is likely to take place, causing stagflation ( when inflation and unemployment rise together).
On the other hand, if producers decide to dismiss workers, unemploymentwould take place. If workers do not improve their production, supply will fall. This would cause the supply curve to shift leftwards, causing prices to rise and therefore inflation to appear. Therefore,in this case stagflation would also occur.
A very good example of this situation in Argentina is the Sindicato de Choferes de Camiones. This trade union has a significant power because of their...