Development: On 8 July Argentina's umbrella union, the Confederación General del Trabajo (CGT), formally split.

Significance: The rupture of the CGT, Argentina's oldest and largest labour organization, is terrible news for the government. The CGT has provided crucial support to President Cristina Fernández de Kirchner despite the difficult start to her presidency, but a sizeable chunk of the union has now broken away precisely because it does not back the government.

Following the CGT's leadership election, Hugo Moyano, a trucker, remains in charge of the umbrella union and is still loyal to the government. However, his main rival, Luis Barrionuevo (head of the main culinary union), has established the CGT Azul y Blanca to run in parallel with the Moyano-led organization, taking with him some 50 unions.

The CGT stuck by Fernández during wage negotiations and the rural dispute. However, Barrionuevo's faction is likely to put considerable pressure on the government, especially on the subject of inflation.