In a significant setback for Argentina's newly elected President Javier Milei, the country's National Chamber of Labor Appeals has suspended a sweeping package of labor reforms that he introduced by decree shortly after taking office. This judicial intervention comes in response to a challenge by the General Confederation of Labour (CGT), Argentina's main trade union federation, which argued that the proposed changes undermined essential worker protections.
Milei's so-called "mega-decree," which encompasses more than 300 measures aimed at deregulating Argentina's economy, sought to increase the probation period for workers, reduce compensation for dismissed employees, and shorten pregnancy leave, among other provisions. However, the court's ruling temporarily blocks the enforcement of these labor regulations until a final decision is made on their legality without congressional approval.
The CGT, which has been a vocal critic of Milei's economic overhaul, celebrated the court's decision, describing it as a halt to "regressive and anti-worker labor reform." The federation has also called for a general nationwide strike on 24 January, demonstrating the widespread opposition to Milei's policies among the country's trade unions and left-wing groups.
The legal challenge and subsequent suspension of the labor reforms underscore the considerable pushback Milei faces in his quest to rescue Argentina's economy from its current state of crisis, characterized by triple-digit inflation, escalating poverty, and dwindling central bank reserves. Milei, who was swept to power in November with 55.65% of the vote, has advocated for a "shock treatment" to address the country's economic woes, warning of "a social catastrophe of biblical proportions" if his proposals are blocked.
Despite the president's vows to appeal the suspension, the decree's future remains uncertain. Congress, which is currently in a special session called by Milei, has the power to repeal the decree if a motion passes both the lower house and the Senate. However, Milei's party does not hold a majority in either chamber, further complicating his efforts to enact his ambitious reform package.
As thousands march in Buenos Aires in opposition to the changes, the dispute highlights the significant roadblocks ahead for Milei's administration. The court's intervention and the looming national strike reflect the deep divisions within Argentine society over the direction of its economic and labor policies. As the judiciary and legislative branches weigh in on the proposed reforms, the outcome will not only determine the fate of Milei's "mega-decree" but also shape the future of Argentina's labor landscape and its broader economic recovery.
