Milei’s radical reform suffers first legal setback after court suspends labor chapter

Milei’s radical reform suffers first legal setback after court suspends labor chapter

In response to this setback, the Milei government promptly announced its intention to appeal the court’s decision

In a significant legal blow to President Javier Milei’s ambitious labor reform agenda, a court in Argentina has temporarily suspended the recently enacted labor reform, responding to concerns raised by labor unions. This marks a judicial obstacle for Milei’s rapid-fire reformist approach since taking office less than a month ago.

The National Chamber of Appeals of Labor in Argentina decided to temporarily halt the labor reform introduced through a decree of necessity and urgency (DNU) signed by President Milei on December 20, responding to a request from the country’s largest labor union, the General Confederation of Labor (CGT). This ruling puts a pause on the labor changes that came into effect on December 29.

The CGT, influenced by Peronist ideology, had mobilized against the DNU last week, urging the judicial system to halt the labor changes proposed by the government. Governor Ricardo Quintela of La Rioja also appealed to the Supreme Court, challenging the constitutionality of the decree.

The CGT leadership welcomed the court’s decision, stating, “It puts a brake on a regressive labor reform.” They emphasized unity and announced plans for a half-day general strike and a large demonstration in front of the National Congress on January 24.

In response to this setback, the Milei government promptly announced its intention to appeal the court’s decision. The Presidential Office issued a statement saying, “The Attorney General of the Nation will appeal the precautionary measure of the Labor Chamber that suspends the labor chapter of the DNU issued by the Government, and will request the incompetence of that jurisdiction.”

According to the government, the court’s resolution contradicts previous rulings in the country on similar matters. They argue that the decision ignores the consensus reached by other courts, both in the city and the interior, which forwarded the case to the Federal Administrative Litigation Court, considered the natural and universal jurisdiction for such issues.

Milei’s proposed labor reform encompasses changes in labor lawsuits, extension of probationary periods in companies, and reduction of maternity leave, among other measures. Additionally, the reform includes reductions in pension contributions, retirement benefits, and fines for inadequate worker records.

This legal development follows a series of economic and legislative initiatives launched by Milei since taking office, reinforcing his commitment to a far-reaching reform agenda for Argentina.