Uruguay on the brink of collapse: union mafia paralyzes the country

Work in Uruguay is going through a critical stage. However, the Frente Amplio government, far from helping to reverse this reality, is taking measures that deepen the crisis.

This Tuesday, August 12, under the mask of "the people first," the unions will hold the country hostage with their classic extortion mechanism: partial general strike. Ministries, hospitals, schools, and basic services will be shut down, demanding more money from the State and affecting those who are trying to drive the country's growth.

As if this were not enough, Parliament recently approved the bill "Uruguay Impulsa: work and training," a reissue of the Jornales Solidarios that increases remuneration and bets on temporary jobs financed with more public funds.

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Paralysis and public spending: the alliance that holds Uruguay back

The combination of union strikes that paralyze the economy and laws that increase public spending without addressing the causes of unemployment is a dangerous cocktail for the country's future.

On one hand, labor monopolies impose wages disconnected from the national economic reality, generating unemployment and inflation. Their business is extortion, now reinforced by a historic ally that supports them from the government.

Frente Amplio, in its Programmatic Bases, keeps that unionization is a "essential human right," promoting its active participation in the National Development Strategy and encouraging its coordination with the State, public companies, and academia.

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Uruguay Impulsa? To this scenario of economic paralysis caused by the union mafia, the approval of the "Uruguay Impulsa: work and training" program is added.

5,500 temporary positions will be created, lasting up to four months, with a payment of $19,700 nominal, ASSE medical coverage, and retirement recognition. An evolution of the Programa Oportunidad Laboral that operated between 2021 and 2024 as a response to the pandemic.

Coordinated by ministries, OPP, and INEFOP, this plan means more public spending and not real solutions.

The direct intervention of the State in temporary jobs forces taxpayers to finance positions that are not created by the private sector, distorting the labor market and discouraging business investment and expansion.

The tax burden required to finance these initiatives increases costs, stagnates the labor market, and reduces genuine opportunities.

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The wrong path: dependency and disincentives

To promote employment, the labor market must be deregulated and the tax burden reduced. By easing the tax and bureaucratic burden, private investment, innovation, and the spontaneous creation of jobs are promoted, which is the true source of economic development.

The forced redistribution of resources through programs like Uruguay Impulsa creates dependency instead of autonomy, fostering a culture of subsidy and not personal effort.

This mistaken model perpetuates unemployment and deepens the imbalances of a paternalistic State that absorbs resources from those who work.

Ultimately, it is necessary to change course toward policies that promote economic freedom, private investment, and real job creation, leaving behind temporary solutions that only worsen the country's problems.