Alert in Tierra del Fuego: the numbers that the new industrial regime puts at risk

Through decree 333/25, the government of Javier Milei formalized what spokesperson Manuel Adorni had announced during the electoral campaign: the reduction of import tariffs on cell phones, televisions, air conditioning units, and various electronic products that have a significant impact on the consumption of the middle class and the Libertarian electorate. He also announced the reduction of internal taxes on electronic products produced in Tierra del Fuego.

It is in this context that the province governed by Gustavo Melella immediately went on alert, both from the union sector and from companies based in the southernmost territory of the country, to defend jobs and the island's economy.

According to estimates, there are currently 6,700 jobs in Tierra del Fuego linked to the electronics industry. If industrial jobs linked to other sectors, such as the plastics industry, are added, the total number of jobs reaches 8,500.

Just a decade ago, in 2015, at the end of Cristina Kirchner's second term (what on the island is called the "golden age" of Tierra del Fuego industry), there were 16,500 jobs. In a decade, 10,000 jobs were lost.

"I have decided to convene representatives of industrial workers and business leaders from Tierra del Fuego for this Thursday the 22nd, with the aim of moving forward with the signing of an agreement that guarantees jobs and protects our industry," Melella announced on his social media accounts on May 20, the same day the decree was published, which could fatally affect Tierra del Fuego's industry.

Tierra del Fuego's industrial regime under Law 19,640 dates back to the 1970s. On the island, they recognize that industrial production consumes dollars, but they also point out the strategic and demographic importance of populating the country's southernmost region.

In fact, the governor's entourage highlighted Chilean newspaper publications in which PERFIL included voices from the neighboring country calling for a similar industrial regime for the Chilean side of the island.

According to figures, there are more than 200,000 inhabitants on the Argentine side. On the Chilean side, the figure barely exceeds 8,000. A contrast that demonstrates the success of Law 19,640 in populating the bicontinental province, which is the key to accessing Antarctica.

Furthermore, some voices on the island pointed out to this media outlet that the criticisms leveled at the Tierra del Fuego regime fail to address other issues, such as sales on the mainland. According to them, a cell phone leaves the factory at a price of US$980, while it sells for around US$1,800 or US$1,900 in the rest of the country.

Milei had zigzagging positions regarding the regime. As a candidate, he wanted to eliminate it. He later reversed his position and even asserted that the Fuegian regime should be extended to the entire country. In the midst of the Buenos Aires electoral campaign, the Casa Rosada surprised with an announcement that put workers, business owners, and authorities on alert.

Adding to the blow that Decree 333/25 represents for the southern province are the repeated visits by the leaders of the Southern Command to Ushuaia. Last year, General Laura Richardson was present at the event with the Argentine president.

This year, Admiral Alvin Holsey visited the South, but his visit was less strident. Nevertheless, there is a belief on the island that the U.S. could significantly assist in the construction of a naval base, which, combined with a possible population decline, could imply a setback in terms of sovereignty.

Agreement and end of the strike

The industrial workers of Tierra del Fuego, organized in the Metalworkers' Union (UOM), reached an agreement with the companies and lifted the strike they had declared days earlier, after the national government published decree 333/25.

The decree establishes a reduction in tariffs on imported products produced on the island. This is why alarm bells quickly went off.

The unions lifted the strike after reaching an agreement on job security through the end of the year, which means the companies will not lay off workers until at least 2025. The agreement expires on December 30.

According to reports, the agreement was reached by the union and the companies based in Tierra del Fuego. The Ministry of Human Capital issued a statement highlighting the agreement and the "social peace" they are committed to maintaining.

In addition, a commission was established, comprised of companies, the UOM (Union of Workers' Organizations), Asimra (Asimra), Afarte (Asimra), and the national and provincial governments to monitor the situation.