Government raises bus subsidies to avert strike in Buenos Aires area

The Argentine government officialized a 15% increase in bus subsidies to prevent a strike called by the UTA on December 5 in the AMBA. The action addresses companies' threats to pay salaries in installments. While most lines will operate normally, some in La Plata may be suspended.

The conflict between the Unión Tranviarios Automotor (UTA), bus companies, and the government escalated in recent weeks when service providers in the Buenos Aires Metropolitan Area (AMBA) announced they would pay November salaries and the December half-year bonus in installments. The UTA ratified a work stoppage for Friday, December 5, with task retention starting at 00:00 in companies not settling full wages. "The salary is the daily effort with which we have fulfilled our labor obligations and constitutes the direct sustenance of our families," the union stated in a communiqué, demanding immediate payment and warning of disruptions to social peace.

In response, the Secretariat of Transportation published Resolution 86/2025 in the Official Gazette, updating the cost structure with a 15% increase in subsidies for national lines in the AMBA. The measure accounts for the basic salary for short- and medium-distance drivers, travel expenses, and a stimulus award in Greater La Plata. Official government sources described the UTA's claim as "unequivocal and political," stemming from a union internal dispute, and clarified that wage payments are the responsibility of private companies. "The Nation has no breach or responsibility," they stated, noting that the tariff-to-subsidy ratio improved from 8%/92% at the start of Javier Milei's government to the current 36%/64%, reducing state dependency.

The Argentine Association of Motor Transport Entrepreneurs (AAETA) confirmed that the vast majority of companies agreed to operate normally thanks to the subsidy adjustment, controlling the situation except for isolated cases. However, lines such as 22, MOQSA (159, 219, 300, 372, 584, 603, 619), San Juan Bautista (383, 500), MO Primera Junta (324, 501, 504, 583), La Cabaña (172, 174, 242, 298, 317, 624, 635), and EDO (244, 320, 390, 443B, 461, 462, 463, 464) may join, though the status of line 148 is unknown. In La Plata, lines 275, 307, and 506 have already suspended services due to wage non-compliance. UTA spokesperson Mario Calegari warned: "If the salary doesn't appear, we can't work," clarifying it involves task abstention on the units.

No mandatory conciliation is expected, as the case involves non-compliance with negotiated terms, not an ongoing collective bargaining. The government emphasized it is not their role to manage private payments, leaving companies responsible for resolving employee claims.

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