Argentina: Court suspends reform of Milei's labor legislation

01/03/2024 10:17 pm (current 01/03/2024 10:17 pm)

Argentina's ultra-liberal president, Javier Milei ©APA/AFP (file)

An Argentine court suspended a reform of labor legislation by new president Javier Milei. Judges on Wednesday froze labor regulations in a Milei decree that, among other things, extended the probationary period, reduced certain compensation and cut maternity leave. It is a first setback for the ultra-liberal right-wing populist.

Judge Alejandro Sudera questioned the “necessity” and “urgency” of the decree and suspended the measures pending Parliament's review, according to the decision published by the Telam news agency. Some of the measures appeared to be “repressive or punitive in nature”. According to Attorney General Rodolfo Barra, the government intends to appeal.

The country's main trade union federation contested the measures, which came into force on Friday last week. He justified this by saying that workers' basic protection rights, such as the right to strike and parental leave, were being compromised.

When he took office on December 10, Milei, elected in November, promised the heavily indebted country “shock therapy” and, a few days later, a decree that would amend or abolish more than 300 existing laws. Thousands of people took to the streets last week to protest the reforms.

The third largest economy in Latin America is going through a serious economic crisis. Inflation has risen to more than 160 percent and more than 40 percent of the population lives in poverty.