When your friend asks you for moderation. New challenges for the argentine unions. The case of the Teamsters Federation

Since 2003 the teamsters’ federation has been one of the most important actors in the national governing coalition in Argentina. But how did it become so powerful? This paper argues that explaining the rise and consolidation of the teamster federation as the vanguard of the Argentinean labor movement requires assessing the impact of market reforms on the power of workers and labor unions. Our analysis demonstrates how processes of economic internationalization and liberalization can increase the power of certain workers while diminishing that of others. Political factors are also relevant for our explanation. During neoliberal administrations of the ‘90s, the teamster federation confronted the government while the leadership of the CGT (General Confederation of Labor) cooperated with it. This confrontational strategy turned Hugo Moyano, the leader of the teamsters, into the main spokesman for the workers opposing the neoliberal model.  So when an anti-neoliberal government took power after the 2001 crisis, the teamsters became a powerful ally from within the labor movement. This political alliance helped the teamsters consolidate their leadership over the rest of the unions and continue with their organizational expansion. In a context of economic growth and low salaries, the teamsters’ fight for better wages was aligned with the government’s macroeconomic objectives. But since 2009 the macroeconomic context has changed. In a context of relatively high wages, slower economic growth and high inflation rates, the government requires restraint on behalf of its ally from organized labor. How can a union that constructed its power based on its confrontational strategy moderate its demands without endangering its capacity to represent the rank and file? Thus, we argue that complying with the wishes of the government they support presents new challenges for the teamsters’ leadership.