The Superior Tripartite Council (STC) is the highest body for labour relations in Uruguay. It was established by Law N° 18566 of 2009 (Article 7). It is composed of 18 members plus advisers, of which six are representatives from the government, six from the workers and six from the employers’ group. It meets regularly to establish and modify the national minimum wage for sectors where it is not possible to determine it by collective agreement.

The Uruguayan Chamber of Commerce and Services (Camara de Comercio y Servicios del Uruguay - CCSU) represents the Commerce and Services Sector in the STC.

During the various preparatory meetings, the Ministry of Labour and Social Security made it clear that “sectoral social partners must take into account the needs for economic growth, considering its fragile condition due to the adverse local and global circumstances, committing to a change of situation if the national economy improves”.

Both employers and workers concurred in the need to extend the special insurance for unemployment or for reduced working hours, in order to avoid dismissals and maintain the levels of employment. 

Juan Mailhos, representative for the CCSU indicated: “We would like to maintain the level of employment but at the same time we must take into account that in this situation the survival of companies is at stake, and act accordingly. The duration of both the flexible unemployment insurance and the traditional unemployment insurance should be extended, since they allow some space and time for economy to recover.”

The latest round of negotiations ended on 7 July 2020 with an agreement for the Commerce and Services sector providing for a nominal increase of 3% as of 1 January  2021, with one additional point for the lowest salaries (equal or lower than UYU22,95 per hour) and a postponement of this nominal increase for sectors with higher unemployment rate.

Moreover, a correction for inflation will be applied at the end of 2021, and a commitment to increase wages in 2022, if the economy permits.

Finally, the Government extended the duration of unemployment benefit to 30 September 2020 and introduced a financial support for companies hiring new employees or individuals receiving the unemployment insurance (UYU5000 monthly for a period of three months).