A court in Argentina has halted labor law reforms that President Javier Milei recently proposed as part of broad deregulation and austerity measures meant to revive the faltering economy, dealing a blow to his political career.
The General Labor Confederation, the principal union organization, challenged the modifications on the grounds that they violated workers’ rights. A three-judge panel of the court decided to rule against the union.
According to the report, Milei’s decree, which was issued in December, changed a number of labor laws. These included lengthening the probationary period for new hires from three to eight months, decreasing severance pay, and opening the door for workers who participated in blockades during certain protests to face termination.
Alejandro Sudera, one of the three judges, said the administration went beyond its authority to decree labor changes, which first needed to be discussed and approved by Congress.
Meanwhile, the union confederation applauded the court, saying the decision “puts a stop to the regressive and anti-worker labor reform.”
Labor activists have questioned whether Milei, a self-described anarcho-capitalist who has long decried the country’s “political caste,” can enforce the measures through an emergency decree that bypasses the legislature.
Milei outlined significant efforts to restructure Argentina’s economy on December 20, just days after taking office as the country’s new president, including lowering government regulation and enabling privatization of state-run enterprises. Around 300 adjustments were made by the libertarian economist.
The measures have stirred protests in Buenos Aires, Argentina’s capital.
Report says since his inauguration on December 10, Milei has devalued the country’s currency by 50%, cut transport, and energy subsidies, and said his government won’t renew contracts for more than 5,000 state employees hired before he took office.
He says he wants to transform Argentina’s economy and reduce the size of the state to address rising poverty and annual inflation expected to reach 200% by the end of the year.
