In a recent development, Argentina’s labor appeals chamber, consisting of three judges, has suspended key elements of a controversial decree signed by President Milei. The decree, implemented last Friday, faced challenges from the CGT trade union body, arguing that it undermines essential worker protections, including the right to strike and parental leave.
Among the contested measures were an extension of the legal job probation period from three to eight months, a reduction in compensation for dismissal, and a decrease in pregnancy leave. Judge Alejandro Sudera raised concerns about the “necessity” and “urgency” of the decree, signed on December 20 shortly after Milei assumed office. The judges froze the measures until a thorough examination by Congress can take place.
Sudera questioned the practicality of some of the measures, describing them as potentially “repressive or punitive.” He emphasized the lack of clarity on how these measures would contribute to Milei’s stated objective of “creating real jobs.” Solicitor General Rodolfo Barra indicated that the government plans to appeal the recent ruling.
Last week, thousands of citizens protested against the reforms proposed by President Milei, a self-proclaimed “anarcho-capitalist” who won the November elections with promises of significant state spending cuts amid Argentina’s economic crisis, characterized by triple-digit inflation.
The CGT has responded by calling for a general strike scheduled for January 24, underscoring the widespread discontent surrounding the proposed reforms. The legality and constitutionality of Milei’s measures have sparked debates among jurists and triggered multiple court challenges.
President Milei, upon announcing the decree, expressed his intention to “start along the path to rebuilding the country” by undoing numerous regulations hindering economic growth. The decree targeted more than 350 economic regulations, eliminating a law regulating rent, proposing state enterprise privatization, and terminating 7,000 civil service contracts.
Argentina, facing severe economic challenges with inflation exceeding 160 percent year-on-year and 40 percent of the population living in poverty, has been grappling with the aftermath of decades of debt and financial mismanagement. Milei, determined to address these issues, won the election on a platform of slashing state spending equivalent to five percent of the gross domestic product.
The president’s administration has already implemented drastic measures, including a more than 50 percent devaluation of the peso, significant cuts in state subsidies for fuel and transport, a halt to new public construction projects, and a year-long suspension of state advertising. Despite promises to curb inflation, Milei has warned that tough economic measures are necessary, and the situation may worsen before improvement occurs. Argentines, scarred by past economic crises, remain watchful as the nation undergoes transformative changes.