Budget 2022 opens the doors to collective bargaining

After an extensive day of debate in plenary – which was extended for up to three days – Congress approved by majority the autographs of the Public Sector Budget, Debt and Financial Balance Law for Fiscal Year 2022.

It’s worth specifying that the public budget received the green light after counting 116 votes in favor, 6 abstentions and 2 against; and according to what was proposed by the Executive, it amounts to S / 197,002 million 269,014, 7.6% (S / 13,927 million) more than this year. The sectors that will receive the most resources are education and health (see infographic).

Salary improvements

One of the elementary changes is the modification of article 6 of the public budget, which prohibited salary improvement and other labor benefits for state employees.

As La República announced days ago, this occurs as a result of the dialogue between the congressmen of the Budget Commission and officials of the Ministry of Economy and Finance (MEF) with the Front of State Workers (FTEP), with which it was possible to give rise to collective bargaining.

“They (the politicians involved) got the message. An objective has been fulfilled and a right is restored. In the 1990s this prohibition was implemented. All the governments of the day have postponed allowing a true collective bargaining and now we feel an arduous satisfaction ”, commented the spokesman of the FTEP, José Sandoval.

In this regard, the owner of the MEF, Pedro Francke, reiterated that a right is restored, which will be given with the equanimity required to maintain financial and budgetary balance.

Along these lines, the former Deputy Minister of Employment Fernando Cuadros recalled that during the first semester of next year, dialogue bridges should be built for salary improvements in the public sector, since said statement will be included in the public budget for 2023.

In addition, he specified that the increases to be negotiated will not be arbitrary, since they must respond to the availability of resources and always respecting the order of public finances.

Finally, the 2022 budget approved yesterday allows the extension of the CAS regime throughout 2022 as well as the location of services (also in cases of replacement and substitution), which are prohibited by law.

However, Cuadros explained that it is extended for extraordinary hires during the pandemic until, gradually, they switch to the stable regime.

The specialist emphasized that the CAS regime will disappear anyway, since according to its regulations, its eradication will take place within a period of no more than five years.

Budgeting based on strength

The head of the cabinet, Mirtha Vásquez, reiterated that the 2022 public budget is based on the solid macroeconomic and fiscal projections of our country, thus balancing the recovery of public revenues and the “gradual and orderly” reduction of the fiscal deficit.

“Our commitment is maintain fiscal discipline without limiting resources for the attention of the pandemic and reactivation ”, he said at the end of his presentation in plenary session.

It is worth noting that Peru will have the greatest reduction in the fiscal deficit for this year: -4.7%; and that the economy would grow up to 13% responding not only to a rebound effect.

The word

Mirtha Vásquez, head of the PCM

“It is historical to have excepted article 6 of the budget law (…) collective bargaining will be a new process that impacts on the way of making a budget.”