Uruguayan industrialists warn of the possible appointment of a Minister of Labor related to the union movement

A mobilization at the door of the Ministry of Labor and Social Security of Uruguay (@PITCNT1)

During the first two days of Yamandú Orsi as elected president of Uruguay A dance of names began over the makeup of his cabinet. The president – ​​who will take office on March 1 – only announced during the campaign Gabriel Oddone as Minister of Economy and to define the rest of the Secretaries of State, he must strike a balance between the different sectors that make up the left coalition Broad Front.

In recent days, lists of names of possible appointees to head the ministries emerged, which It has been followed closely by the entire political system, the unions and the business community. In the latter case, there is a position they are looking forward to with even more interest: that of the Minister of Labor.

In particular, Businessmen are attentive to whether the head of this State Secretariat – key to the definition of (parity) salary guidelines – is a name related to the PIT-CNT, the union center of Uruguay. The memory of the 15 years of government of the Wide Front (between 2005 and 2020) is latent: the relationship during these three sections was tense.

The president of the Chamber of Industries of Uruguay (CIU), Fernando Pache (MIEM)
The president of the Chamber of Industries of Uruguay (CIU), Fernando Pache (MIEM)

The nomination of the minister is key. To determine whether to continue investing in the industry, whether to stop or look at the region, or whether to encourage investment in new facilities.“, he declared to the newspaper The Observer the president of the Chamber of Industries, Fernando Pache.

The union representative considers that It is key to know that the actions that the next government will carry out will not be defined together with the PIT-CNT. “The country has already experienced this for 15 years and we do not want to repeat it,” he said.

The tension was such in the Frente Amplio governments that the businessmen filed a complaint with the International Labor Organization (ILO)which has not yet risen.

The Ministry of Labor and Social Security of Uruguay (@PITCNT1)
The Ministry of Labor and Social Security of Uruguay (@PITCNT1)

Two of the most controversial events occurred during the first government of the Frente Amplio. In 2006, the president Tabare Vazquez regulated the occupation of workplaces as an exercise of the right to strike. At the end of his mandate, he approved the Collective Bargaining Law for the private sector. These two decisions were described by the PIT-CNT as achievements of the workers.

Although there is no official definition, The name that has been used unofficially for the Ministry of Labor and Social Security (MTSS) is that of the general secretary of the Communist Party, Juan Castillo. If confirmed, it would be a Secretary of State close to the union movement.

But beyond the expectation that exists in the industrial sector due to the appointment of the minister, Pache highlighted that Orsi has a favorable stance towards the industry and the jobs it generates in the sector. “We are committed to having a very good, sensible and fluid dialogue, and we are at your disposal to work in that direction,” he said.

Marcelo Abdala, president of the PIT-CNT (EFE/ Gianni Schiaffarino)
Marcelo Abdala, president of the PIT-CNT (EFE/ Gianni Schiaffarino)

In the Confederation of Business Chambers They also remain attentive to the cabinet’s definitions. “A change of government always generates expectations, even more so if it is a change of political sign. Uruguay has a tradition of continuing successful policies across governments. There are expectations of working together,” said the president of that union group, Diego O’Neillto the news Telemundo from Channel 12.

The business community is betting that public spending and the fiscal deficit will be reduced, that deregulation will advance and that agreements will be reached in education and security.

Despite the uncertainty generated by the appointment of the Minister of Labor, the economy minister appointed by Orsi He is an economist close to the business community. He has leftist ideas, but is resisted by some sectors of the Broad Front. Until he retired at the age of 60, he was one of the main partners of the consulting firm CPA Ferrere. He has a doctorate in economics and has been a consultant to the Inter-American Development Bank, the World Bank, CAF-Development Bank for Latin America and the Latin American Development Program.

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