General strike in Argentina: First test of strength for Milei

Argentina’s President Milei began his term in office with radical reforms, and many more are to follow. Now resistance is forming: unions have called for a general strike.

It’s hot and loud – Karina Nicoletta’s life takes place underground. For 29 years. That’s how long she’s been working at the “Subte”, the subway in Buenos Aires. First as a ticket seller, now as a train driver and union leader. She fights for better working conditions for women, for wage adjustments, and better protection against dismissal.

However, the 50-year-old Argentine believes that there has never been as much at stake as now, under the government of the new Argentine President Javier Milei. That’s why the subway is at a standstill today.

“I am striking to defend our democracy, a life in dignity and the rights we have fought for as workers. My wages have always been enough for me for life.” But with current inflation it’s hardly worth anything, says Nicoletta. The current policy primarily affects workers but also the middle class and must be stopped.

First test of strength for Milei

Argentina’s powerful unions have called for a general strike. It is the first test of strength for the right-wing libertarian president, who took office only six weeks ago – with the declared goal of using “shock therapy” to cure the country’s ongoing crisis.

Argentina’s budget deficit is chronic, the mountain of debt is gigantic, and inflation was 25 percent in December alone. “No hay plata” – there is no money – declared Milei on the day he took office. He immediately embarked on radical austerity measures. Ministries were eliminated, civil servants were fired, subsidies were cut, and the currency was massively devalued.

Workers’ rights should be made more flexible and state-owned companies should be privatized. The state, which he sees as overreaching, should be reduced to a minimum, if necessary, even by decree bypassing parliament, in which he does not have a majority.

Right-libertarians Worldview

Milei sees the root of all evil in an alleged socialism that has not only run Argentina down, but also threatens the idea of ​​freedom in the rest of the Western world, just like feminism and the eco-movement, Milei lectured to the somewhat astonished audience on his first trip abroad World Economic Forum in Davos.

“The major leaders of the Western world have abandoned the model of freedom for various versions of what we call collectivism,” Milei said in Davos. There are no substantial differences between communism, social democracy or National Socialism. The speech, which was celebrated online, rather raised eyebrows in Argentina – except among the ideological core audience.

Milei wants to push through a huge reform package

It also comes at a time when Milei must win congressional support for his so-called omnibus bill: a 300-law, more than 600-page reform package that, among other things, calls for declaring a public emergency.

This would give the government extensive special legislative powers. But there is resistance. Courts have objected to parts of the decree, and Milei’s team also had to have parts of the “Omnibus Law” revised.

The clock is ticking. Milei knows that he doesn’t have much time, says political scientist Juan Negri from the University of Torcuato di Tella in Buenos Aires: He still has relatively strong support among the population, even if the economic situation has worsened for now. Milei takes advantage of this. In the best case scenario, there will be improvement after a tough initial period, but: “There is also the risk that social and political resistance will become greater before Milei’s policies bear fruit.”

Unions are fighting, opposition is waiting

Resistance is expected today. Argentina’s unions are powerful and well organized. It is a legacy from the times of General Juan Domingo Peron and his wife Evita, the founders of Peronism. These granted the unions extensive rights. The largest association, CGT, alone has six million members today. If he wants, Argentina stands still.

However, the unions, especially their leadership, also have a reputation for acting like a mafia and lining their own pockets more than fighting for the rights of the poor. This makes them the perfect enemy for Milei: From his point of view, they are, like the Peronists, the “caste” that blocks reforms in order to enrich themselves.

And the unions are joining forces with social movements in the showdown with Milei. The Peronist opposition has so far held back from criticism. Their strategy seems to be to wait and see how the mood develops.

At such an early stage, the general strike could also turn out to be an own goal for the unions, believes political scientist Negri. “It’s our duty to take to the streets,” says subway guide Nicoletta: “In my view, the government is trying to stigmatize us in various ways. But Milei will have to understand that he doesn’t care about the people who don’t like him elected, cannot simply ignore – and that he cannot rule bypassing the state’s institutions.”