According to the consumption indicator of the Argentine Chamber of Commerce and Services (CAC), the clothing and footwear sector recorded a 27% decline in the first five months of 2024 as compared to the same period of the previous year.

In the footwear sector in particular, factories continue to produce at low levels due to weak demand and are making great efforts to retain their workforce. It should be noted that there are still difficulties with imports due to internal and external causes, as well as the debt accumulated by Argentine importers.

Against this backdrop, the two footwear fairs in Buenos Aires and Cordoba in July, where the new spring-summer collections will be presented, are being awaited with some anticipation. However, the Chamber argues that this trend is unlikely to recover unless certain economic variables are in place.

Wage Increases

Meanwhile, the Footwear Industry Workers’ Union (UTICRA) and the Federation of the Argentine Footwear Industry (FAICA) have reached a new wage agreement for workers in the sector for the summer months. The agreement provides for a phased increase in basic and additional wages, calculated based on the wage scale in force until the end of May 2024. A 10% wage increase will be implemented in June, 16.8% in July and 23.6% in August. Both parties will meet again at the end of the period to evaluate the situation.

Source: serma.net