Milei’s economic measures face their first obstacle in court

Buenos Aires, Jan 3 (EFE).- Argentina’s National Chamber of Appeals for Labor has temporarily suspended the labor reform contained in the Decree of Necessity and Urgency signed by Argentine President Javier Milei on Dec. 20 as part of a broad deregulation of the economy.

Judges Andrea García and Alejandro Sudera issued a precautionary measure on Wednesday, in response to a request by the General Confederation of Labor (CGT in Spanish), the largest labor union in the country. This measure nullifies the changes in labor matters that had entered into force on Dec. 29.

Last week, the CGT, which has Peronist tendencies, mobilized against the Decree of Necessity and Urgency and also asked the judiciary to stop the labor changes that the government wanted to impose. The governor of La Rioja Province, Ricardo Quintela, also asked the Supreme Court to declare the decree as unconstitutional.

On Wednesday, the National Chamber issued a measure affecting the applicability of the provisions of Title IV of the decree, specifically related to labor. This resolution will remain in force until a final judgment is issued in the case.

The reform proposed by Milei includes, among other things, changes to labor lawsuits, the extension of probationary periods in companies, and the reduction of pregnancy leave.

The labor reform also includes a pension contributions reduction, severance pay and fines for failure to register workers.

The measures of Milei’s decree are complemented by initiatives announced by the Minister of Economy, Luis Caputo, on the second day of the new government, Dec. 12, and by the so-called «omnibus law» (ley omnibus in Spanish), with which the president intends to accumulate legislative powers.

The economic packages of the Argentine government face challenges on multiple fronts. The first is in the political area, where Milei depends on the support of other political forces to advance his proposals.

Second, opposition in the streets, where mobilizations have already taken place. In fact, the CGT called for a half-day general strike and a large mobilization in front of the National Congress on Jan. 24.

And finally, in the judicial sphere, as there are already ten appeals for protection against the decreein the Argentinean courts. EFE

jgv/dgp/ics