Argentina's Dairy Industry Faces Transformation with Milei's Decrees
Source: The DairyNews
Javier Milei's recent Decree of Necessity and Urgency (DNU) has ushered in significant changes in Argentina, particularly impacting the dairy chain. Released on December 29, the decree focuses on deregulating the economy and breaking the monopoly held by various actors in certain sectors.
One notable change revolves around the relations between industries and unions, addressing issues that have long affected the dairy sector. The DNU challenges the traditional solidarity fees, requiring explicit consent fr om employees for mandatory contributions to unions. This change could potentially diminish the financial resources of unions, benefitting non-affiliated workers.
Moreover, the decree introduces alterations in the social works system, allowing members to choose prepaid medicine companies directly, bypassing intermediation through social works. This shift is expected to empower individuals to decide wh ere their contributions go, eliminating additional layers of bureaucracy.
The decree also classifies certain activities as essential services or activities of transcendental importance, specifying the required percentage of normal work for each category. The food industry, including its entire value chain, falls into the latter category, emphasizing its critical role in the nation.
Additionally, modifications to union-related laws aim to curb worker assemblies that disrupt normal company activities, penalizing such actions. The DNU also deems participation in blockades or establishment takeovers as a "serious labor injury," specifying conditions under which it applies.
While there are no immediate significant changes for dairy farmers, a couple of articles in the decree may impact agricultural activity. The elimination of the land law, which limits the percentage of rural land owned by foreigners, could open negotiations without restrictions. Changes in the Civil and Commercial Code aim to reinforce contractual freedom and allow obligations contracted in foreign currency to be paid in the agreed currency, potentially influencing how contracts are structured.
As Argentina undergoes these transformative changes, the dairy industry and agricultural sector are poised to adapt to a new regulatory landscape.
Moreover, the decree introduces alterations in the social works system, allowing members to choose prepaid medicine companies directly, bypassing intermediation through social works. This shift is expected to empower individuals to decide wh ere their contributions go, eliminating additional layers of bureaucracy.
The decree also classifies certain activities as essential services or activities of transcendental importance, specifying the required percentage of normal work for each category. The food industry, including its entire value chain, falls into the latter category, emphasizing its critical role in the nation.
Additionally, modifications to union-related laws aim to curb worker assemblies that disrupt normal company activities, penalizing such actions. The DNU also deems participation in blockades or establishment takeovers as a "serious labor injury," specifying conditions under which it applies.
While there are no immediate significant changes for dairy farmers, a couple of articles in the decree may impact agricultural activity. The elimination of the land law, which limits the percentage of rural land owned by foreigners, could open negotiations without restrictions. Changes in the Civil and Commercial Code aim to reinforce contractual freedom and allow obligations contracted in foreign currency to be paid in the agreed currency, potentially influencing how contracts are structured.
As Argentina undergoes these transformative changes, the dairy industry and agricultural sector are poised to adapt to a new regulatory landscape.
