Argentina
Court stops President Milei’s labor market reforms
Argentine President Javier Milei recently signed a decree with a total of 30 measures. photo
© Natacha Pisarenko/AP/dpa
The Argentine president has failed for the time being in his attempt to curtail workers’ rights. Milei’s government plans to appeal the court decision.
Ultra-liberal Argentine President Javier Milei has suffered a legal setback in his attempt to restrict workers’ rights. A labor appeals court imposed an interim measure on Mileis Labor market reforms and thus an important part of his emergency decree, as national media consistently reported.
The country’s largest union had previously filed a lawsuit against it. The court found that so many and important measures on the labor market should not be passed by decree without congress. The government will appeal the decision, TV channel TN reported, citing prosecutors.
Partial success for the CGT trade union federation
In December, Milei signed a decree with a total of 30 measures that provides for the repeal of several laws regulating the labor and real estate markets. The ruling suspends labor market reforms that include sweeping changes such as restrictions on the right to strike, changes to compensation and a cut in union revenues.
For the CGT trade union federation, the court’s decision is a partial success. “This court decision puts the brakes on the regressive and anti-employee labor market reform,” CGT said, according to TN. The union recently mobilized thousands of people to take to the streets against the economically liberal course of the new government. She has also called for a general strike on January 24th. The last strike by the left-wing Peronist trade union federation was in May 2019 and it largely paralyzed the country.
Severe economic crisis
Argentina is in a serious economic crisis. The inflation rate is over 160 percent, and around 40 percent of people in the once rich country live below the poverty line. South America’s second largest economy suffers from a bloated state apparatus, low industrial productivity and a large shadow economy that deprives the state of a lot of tax revenue. The national currency, the peso, continues to lose value against the US dollar and the mountain of debt is constantly growing.