Senator Carolina Moisés announced on Apr. 1 her initiative to repeal the Labor Assistance Fund (FAL), criticizing the system for undermining job security and reducing funding for the National Social Security Administration (Anses). Moisés is joined in this effort by legislators Flavia Royón and Alejandra Vigo, who previously supported the government’s labor reform measures.
Moisés said, “El FAL no es seguridad social, es un mecanismo para que el Estado pague las indemnizaciones que les corresponden a las empresas.” She warned that the fiscal cost of this scheme amounts to 3.28 trillion pesos, which she described as a significant deficit representing 0.32% of Argentina’s gross domestic product.
The senator argued that the FAL distorts severance pay by removing its deterrent effect and making it easier for companies to rotate employees. “Estamos frente a un modelo que abarata el despido y precariza el trabajo, beneficiando a quienes menos invierten en empleo de calidad,” Moisés said.
She also criticized what she sees as a regressive aspect of the fund: “Permite que los empleadores recuperen fondos no utilizados, convirtiendo lo que debería ser un instrumento de protección en una transferencia de recursos públicos hacia el sector privado.” According to Moisés, this mechanism turns what should be worker protection into public subsidies for private businesses.
Moisés concluded by stating that the proposed system diverts resources from retirement funds into low-yield financial schemes. She said it weakens social protection and moves away from supporting stable employment: “desvía recursos del sistema previsional hacia esquemas financieros de baja rentabilidad, debilitando la protección social y alejándose de un modelo productivo con empleo estable.”
The broader implications of this proposal involve debates over labor rights and pension sustainability in Argentina. Observers will watch closely how lawmakers respond to these concerns about fiscal responsibility and worker protections.
