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Labor Secretary Launches Tripartite Dialogue Amidst Baemin Fee Controversy

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Discover how Secretary Julio Cordero's tripartite table aims to enhance dialogue for job creation amid rising tensions from Baemin's recent fee hike affecting small businesses.


This afternoon, Secretary of Labor, Employment and Social Security, Julio Cordero, met with the influential “group of 6” business representatives to announce the formation of a tripartite table aimed at fostering dialogue between employers, workers, and the government. This initiative is part of the broader May Council framework focused on job creation. Cordero emphasized the importance of an open agenda meeting, stating, “Next week we will convene employers and workers for a tripartite table where all sectoral issues can be discussed.” While a specific date for this meeting has not yet been set, it is anticipated to occur within the next two weeks. The discussions will continue through technical meetings with Labor officials, ensuring that all voices are heard in the upcoming tripartite meeting, which aims to have a strong federal imprint through the Federal Labor Council.

During the meeting, business leaders expressed their support for the initiative but raised concerns about the need to resume labor reforms that had been excluded from the Base Law. Mario Grinman from the Chamber of Commerce highlighted the necessity of addressing over 800 labor agreements in the industry to tackle various sector-specific issues. The agenda for the upcoming tripartite meeting will be collaboratively established, with an emphasis on labor reforms that impact businesses and workers alike. Grinman pointed out that with 50% of jobs in the informal sector, Argentina must adapt its frameworks to create more job opportunities.

In parallel, the delivery service giant Baedal Minjok, known as Baemin, is facing severe backlash following its announcement of increased fees, which has raised concerns among civic groups and self-employed individuals. The fee hike, which will see the brokerage fee for Baemin 1 Plus rise from 6.8% to 9.8%, has been criticized as an unfair practice that could significantly burden small business owners and consumers alike. The People's Solidarity for Participatory Democracy (PDPD) has condemned Baemin for its market dominance and unfair fee structures, prompting an investigation by the Fair Trade Commission into the company's practices.

As the government grapples with Baemin's fee increase just after announcing support for small and medium-sized businesses, four ministries are set to launch a consultative body aimed at addressing the challenges faced by delivery platforms and storefront companies. The Baemin representative defended the fee increase as a necessary measure in a competitive market, asserting that it is essential for sustaining their business. This situation highlights the ongoing tension between large corporations and small businesses in the rapidly evolving delivery service sector.

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Refs: | SBS News | Clarin |

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