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Argentina Shuts Railway Company, Cuts 1,400 Jobs
(MENAFN- The Rio Times) The Argentine government announced the closure of Trenes Argentinos Capital Humano (DECAHF) on Tuesday.
This state-run railway company's shutdown will result in nearly 1,400 job losses. The decision aligns with President Javier Milei's cost-cutting measures aimed at reducing public spending.
Manuel Adorni, the presidential spokesperson, revealed the expected annual savings from this closure. The government anticipates saving 42 billion pesos, equivalent to $43.3 million.
Adorni emphasized that this move reflects the mandate given to President Milei by Argentine voters in 2023. Of the total workforce, 1,388 workers lost their jobs outright.
However, 423 employees will be transferred to Ferrocarriles Argentinos Sociedad del Estado (FASE) . This partial reallocation aims to minimize the impact on railway operations.
Government officials claim DECAHF's structure had become bloated, duplicating tasks already performed by other state railway entities.
Franco Mogetta, the Secretary of Transport, defended the decision as a necessary step towards reducing the state's deficit.
The government accused DECAHF of spending $180 million on questionable projects under the previous administration.
These expenditures reportedly included art installations in train stations and contracts with popular artists.
Argentina Shuts Railway Company, Cuts 1,400 Jobs
Milei's administration has implemented widespread austerity measures since taking office in December 2023.
Over 33,000 state employees have lost their jobs in the past ten months. Argentina's economic situation remains dire, with inflation reaching 236.7% annually as of August 2024.
The International Monetary Fund has revised its economic forecast for Argentina, now expecting a 2.8% contraction in 2024 instead of the previously projected 2.8% growth.
This reversal highlights the significant impact of Milei's policie on the country's economic outlook. Public opinion remains divided on the government's approach to fiscal reform.
Supporters view these measures as necessary to address long-standing economic issues, while critics argue that the cuts disproportionately affect workers and essential services.
The debate continues as Argentina grapples with its economic challenges.
This state-run railway company's shutdown will result in nearly 1,400 job losses. The decision aligns with President Javier Milei's cost-cutting measures aimed at reducing public spending.
Manuel Adorni, the presidential spokesperson, revealed the expected annual savings from this closure. The government anticipates saving 42 billion pesos, equivalent to $43.3 million.
Adorni emphasized that this move reflects the mandate given to President Milei by Argentine voters in 2023. Of the total workforce, 1,388 workers lost their jobs outright.
However, 423 employees will be transferred to Ferrocarriles Argentinos Sociedad del Estado (FASE) . This partial reallocation aims to minimize the impact on railway operations.
Government officials claim DECAHF's structure had become bloated, duplicating tasks already performed by other state railway entities.
Franco Mogetta, the Secretary of Transport, defended the decision as a necessary step towards reducing the state's deficit.
The government accused DECAHF of spending $180 million on questionable projects under the previous administration.
These expenditures reportedly included art installations in train stations and contracts with popular artists.
Argentina Shuts Railway Company, Cuts 1,400 Jobs
Milei's administration has implemented widespread austerity measures since taking office in December 2023.
Over 33,000 state employees have lost their jobs in the past ten months. Argentina's economic situation remains dire, with inflation reaching 236.7% annually as of August 2024.
The International Monetary Fund has revised its economic forecast for Argentina, now expecting a 2.8% contraction in 2024 instead of the previously projected 2.8% growth.
This reversal highlights the significant impact of Milei's policie on the country's economic outlook. Public opinion remains divided on the government's approach to fiscal reform.
Supporters view these measures as necessary to address long-standing economic issues, while critics argue that the cuts disproportionately affect workers and essential services.
The debate continues as Argentina grapples with its economic challenges.
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