Rioting and looting because the President is out of touch with the people, says Moyano

Argentine dissident organized labour leader Hugo Moyano claimed on Friday that President Cristina Fernandez is out of touch with the people and “the lackeys she has are scared of her and can only say stupid things”. Moyano’s strong words followed accusations by the government that he was behind the extended rioting and looting that hit several Argentine cities on Thursday and Friday.

Abal Medina from Government House blamed dissident unions

Moyano said the lackeys that surround the president can only say stupid and idiotic things  

Berni insists that the lootings were clearly organized and had political intentions

“I think the president is out of touch. She sends these blokes to say a lot of stupid and idiotic things. The government can’t pretend to be serious with these lackeys”, underlined Moyano without naming any official but in direct reference to cabinet chief Juan Manuel Abal Medina and Security Secretary Sergio Berni whom he described as a “devalued Rambo”.   

The teamsters boss said that the government’s officials were a pack of ‘bigmouths’ that can only repeat stupidities and this is because “the government has no answers, no replies so it then tries to play the role of the victim and accuses the workers”
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“These officials are acting as in the time of military dictatorships. They accuse whoever they please and invite people to come and bash us. They are provoking people into violence, when in reality teamsters are victims because many of our lads had their cargoes stolen and were also beaten”, insisted Moyano.

The teamsters’ leader pledged that “these gentlemen will have to repeat what they are saying before court. They are constantly accusing and disqualifying the workers and the official media are scaring the people to make them think that we who represent workers are responsible for what is going on”.

“The Government created the conditions for the lootings, not workers” underlined Moyano.

Earlier on Friday Cabinet Chief Abal Medina said that the supermarket lootings and widespread violence in several cities across Argentina were linked to anti-government union leaders Hugo Moyano, Pablo Micheli and Luis Barrionuevo.

“In Campana, there is someone linked to the Teamsters union” stressed the cabinet chief during a ceremony at the Government House. “Violent people do not rest and seek to keep on putting a spoke in the wheel,” he added.

Berni in Bariloche, (where the looting started on Thursday) with 400 Border Guards patrolling the Patagonian resort said that the looting was ‘organized’ and ‘respond to political issues’, and then linked them directly to the dissident unions and their leaders such as Moyano and Pablo Micheli.

“They are isolated incidents clearly organized which attempt to distort social peace, and spoil the great moment Argentina is living” said Abal Medina who added “nobody was after food: they were after plasma TVs, LCD, electrical appliances and drinks”.

Asked to be specific about those responsible for organizing the incidents that spread to several provinces and major cities such as Rosario and metropolitan Buenos Aires, Abal Medina said that “the government of Neuquen pointed out to dissident groups from unions and other governors told us they had seen sectors linked to teamsters and the gastronomic union in the incidents”.

“We’re talking of people who clearly have political intentions”, affirmed Abal Medina.
 

Argentine Coast and Border Guards conflict unchanged in its fourth day

Argentine Border and Coast Guards members were moving into their fourth day of conflict despite the fact the government of President Cristina Fernandez had deposited their full pay-checks that had been ‘mistakenly’ severely cut, based on Decree 1307. Prospects are that the conflict could extend until Tuesday.

Security Secretary Sergio Berni promised a reply to the petition before next Tuesday

Protesting outside their main headquarters in Buenos Aires, the “Centinela” and “Guardacostas” buildings representatives said they were waiting a reply to their petition on salaries, working conditions and pension contributions, while there were intense versions of ongoing discussions with the top brass of the two forces to unlock the conflict.

Security secretary Sergio Berni said he had received the petition from the protesting border and coast guards, and promised “a reply before next Tuesday”.

Some officers from the Navy and Air Force joined their comrade in arms camped outside the two headquarters while it was revealed that members from the Buenos Aires province police were also beginning to plan actions in demand of higher salaries.

Earlier on Thursday the new head of the Gendarmerie, Enrique Zach, pledged before a group of officers that “no disciplinary measures” will be applied against those who are protesting.

“In line with what was announced yesterday (Wednesday) by Cabinet Chief Juan Manuel Abal Medina, the money owed for the month of September has been deposited in the bank accounts of the Border Guard officer,” the Security Ministry announced in a statement.

The Argentine government responded on Wednesday to the protest by firing the top brass in both security forces and promising to remedy salary “injustices” caused by controversial Decree 1307/12.

Under the new system established by the decree most of the troops would either earn the same or less than they previously had. However, despite widespread sympathy for the cause, politicians of all political stripes condemned the protest, describing it as aggressive and even unconstitutional.

The new head of the Coast Guard Luis Alberto Heiler also held meetings with officers to discuss the situation but there was no immediate solution to the conflict.

The meetings were held at the Guardacosts building with the purpose of “recomposing authority links which deteriorated in recent hours expressed in aggression situations to some higher ranking officers of the force”, said a spokesperson for Heiler.

On Thursday morning members from the two forces said that they would continue with the protests until next Tuesday, when an official reply to the petition was promised and “guaranteed that all duties of the forces are being addressed with normality”. They insisted it was no coup or attack on the democratic system which they support.

“We’re not aggravating the situation: it was all the making of the Ministry of Security, she’s incompetent. We want a basic salary of 7.000 Pesos and full contribution to pension funds. Once they confirm this, in five minutes all is back to normal” one of the protestors was quoted.

Whilst they wait for the Security Ministry's answer over the signed petition presented earlier on Thursday, Border and Coast Guard officers anticipated they might deepen measures if they do not reach an agreement before Tuesday as was promised by the administration of President Cristina Fernandez.

Argentine union leader confesses he never believed in the “official inflation rate”

Argentina’s Metal workers union (UOM) leader Antonio Caló said on Thursday he “never believed in the (official stats office) Indec” and openly estimated that inflation in the country is running at “23% to 24%”.

Caló. Our union has its own stats office and inflation is running from 23% to 24%

“I never believed in the Indec figures, not now nor when Central Bank Resolution 1050 which allowed banks to take over workers homes”, said Caló interviewed by a local Buenos Aires radio.

Resolution 1050 allowed banks to grant credits with no before hand agreement on interest rates and would let banks apply market rates, at a time when hyperinflation was a common phenomenon in Argentina.

The mention of resolution 1050 has a double significance and is a strong political message since opposition sectors coincide that the origin of the Nestor and Cristina Kirchner’s fortune is precisely this resolution.

The fact it that one of the first jobs of the Kirchner couple at a solicitors’ office was to ensure payments of loans granted under R 1050.

Following his mention of R 1050 Caló insisted that he does not believe in the official Indec inflation rate and revealed that the UOM has its own stats office which measures the “purchasing power of salaries” from union members and which are the basis for wage negotiations with the industry.

“This year we asked for a 24% increase because we believe this year’s inflation rate is going to be in that range, 23% to 24%”, said the metal workers union boss and who is disputing with Hugo Moyano control of Argentine organized labour umbrella organization CGT.

“We have always been willing to reach a deal with Moyano. Now we are on different paths but at some point we will have to join forces: we must think in the whole workers movement”, added Caló.

However “we are not willing to become an opposition CGT; the governments of Nestor and Cristina Kirchner have been very supportive of labour. CGT must not be on the opposition, we must try dialogue”.

However Caló said he had “the same agenda” as Moyano. “All workers must collect family allowance, no matter whatever they make; that is our first demand”, insisted Caló who next October will be participating in a unions’ congress to organize a parallel CGT to that one under the leadership of Hugo Moyano.

Argentine pro-government unions don’t trust Cristina’s stats and official inflation

Despite having managed to split organized labour and declared war on its most powerful exponent the teamsters boss Hugo Moyano, the government of Argentine president Cristina Fernandez still has to deal with its unconvincing stats office and rampant inflation.

Anti-Moyano union leaders meet with Cristina Fernandez Anti-Moyano union leaders meet with Cristina Fernandez

Labour leaders who oppose the powerful CGT chief Hugo Moyano met on Monday with Cristina Fernandez at Government House but in spite of the good chemistry, they did not yield in the issue and said they did not trust the official stats from the government’s Statistics and Census Institute, Indec.

“I don’t believe in the Indec at all” said Andres Rogriguez head of the public employees union who revealed that at the meeting with the president in Casa Rosada “we were not specific about any issue, but rather the door was opened for negotiations on current and pending issues in the near future”.

“We’re not going to pull the rope, so it breaks” said Rodriguez after stating that in discussions with government “you need to be cautious”. Formally the anti Moyano union leaders that met with Cristina Fernandez talked about labour movement’s demand for a higher income taxing floor, making family allowances universal and the recovery of part of the unions’ social works funds.

The reference to Indec coincides with the demands from Moyano and the CGT who on taking office for another period as chairman anticipated the labour organization would elaborate its own cost of living index to keep track of real inflation, “and not the government’s manicured index”.

“We left the meeting very satisfied” said Rodríguez. President Cristina Fernandez promised the dissident labour leaders a “normalizing” election of CGT for next 3 October and that in August the government would convene all sides to begin talks on the minimum, vital and mobile salary. The unions have advanced they will be demanding a 25% increase for the minimum salary.

Rodriguez said he has no problem in aligning with the government of Cristina Fernandez and accepted to be included in an “official CGT” which will be contrary to Moyano and his CGT.

“The official government line does not bother me; we support in general what we consider a positive model for the workers, but there are pending issues such as including unregistered workers. We’re here not for labels but working for solutions”, said Rodriguez.

'Moyano's power is starting to wither,' Pichetto

The head of the Kirchnerite Junta bloc in the Senate Miguel Ángel Pichetto, spoke today in heavy criticism of secretary-general of the CGT umbrella union Hugo Moyano, and said that “he had more power before marching to the square than after,” referring to Wednesday’s mass rally to the Plaza de Mayo.

“With regard to the rally, frankly it was completely unnecessary. The strike was politically fuelled, paying attention to union demands that had already been settled in wage talks,” Pichetto continued.

“Moyano’s role in the CGT with regard to his leadership is starting to weaken.” (SW - The is no proof to show his leadership is weakening, in fact its the exact opposite)

Furthermore, the Victory Front lawmaker stated that “the head of the CGT needs to be on the same side as the Government.”

The remarks made by Pichetto were in reference to the mass rally Hugo Moyano led to the Plaza de Mayo on Wednesday where his faction of the CGT went out to defend the wage income tax that they wanted changed for civil servants.

“Test of strengths” shows Moyano is capable of challenging Cristina Fernandez

The two call for dialogue but at the same time argue they are victims of extortion so it is difficult to see reconciliation, rather as escalation of the confrontation between President Cristina Fernandez and organized labour chief Hugo Moyano, particularly following on Wednesday national strike and rally at Plaza de Mayo.

According to analyst Fraga, the rift can be expected to widen.

Rosendo Fraga, one of Argentina’s main political analyst and historian in a column in La Nacion writes that the “test of strengths” has shown that Moyano, who had seen his power eroded to the hands of CFK electoral success and plotting to divide the labour movement with Wednesday’s rally is capable of putting up a strong resistance although not necessarily to grow an alternative.

Furthermore, according to Fraga dialogue negotiations are not in the genetics of Cristina Kirchner’s way of thinking and strategy, which only comes to confirm the growing distance between the two leaders.

On the Moyano side the personal attacks from the organized labour chief and his son Pablo, head of the teamsters regarding the origin of the Kirchner couple wealth and their activities during the last Argentine military dictatorship, far from closing the gap, further open it.

Moyano the only speaker at the rally, as union chief and not as political leader, recalled that in Argentina during the military regime there were those who sought exile in other countries and others “who took refuge in Patagonia”, while many of those who now make up the current administration, kept quiet and hid under their beds. “Workers and union leaders meantime were fighting to help recover democracy and restoration of human rights”.

Even when Argentine unions’ tactics have been to push, push and then negotiate, Fraga says “this is not working now, and looking ahead most probably the conflict not only will continue but will escalate”.

Moyano has called for a new support demonstration in two weeks time, July 12 in coincidence with the CGT congress that should re-elect him but most probably will be ignored by the Ministry of Labour and his unions’ adversaries.

And “the most probable division of the labour umbrella organization CGT will make it more difficult and not easier for a rebuild of the broken relation between Moyano and the Casa Rosada”

However with Moyano as the only speaker the rally was essentially a workers protest in spite of the fact through the social network most of the anti-K forces from farmers to opposition members of parliament were convened but were not to be seen.

At the end of the day “Moyano must realize he has shown to have the necessary strength to resist but yet not, to grow. On the Cristina Fernandez side it must be aware of this fact and that the rapidly changing economic situation for the worse will only further boost political and social conflicts” concludes Fraga.

“Only a few months ago the government strategists believed they could win placing Moyano as the enemy, but now that does not seem so clear”.