The decision will remain in effect until the country's Supreme Court makes a final decision. The new president's package is being contested by trade unionists
The Argentine Labor Court applied this Thursday (January 4, 2024) a new precautionary measure that suspends the labor reform of President Javier Milei, included in the economic package known as the DNU (Decree of Necessity and Urgency) and baptized by opponents as “Decree” .
This is the second measure initiated by the CTA (Central de Trabalhadores de Argentina) signed by judges Andrea García Vior and Alejandro Sudera. According to La Nación, the resolution states that it is necessary to “intervene without waiting for a substantive solution to the case, as there is a “serious risk of social conflict” that could lead to “unusual acts of violence.”
Administrative judge Enrique Lavié Pico rejected a government request to withdraw the CGT case from the labor court. The only option now is to appeal to Argentina's Supreme Court.
The first measure, signed on Wednesday (January 3), was initiated by the CGT (Central Geral dos Trabalhadores). The decision will remain in effect until a final solution is found. In practice, the two decisions temporarily suspend labor reform.
Among other measures, the decree (full PDF 425 kB) ends the socalled “solidarity taxes”, a collection tool for trade unions that introduces mandatory discounts for all workers in an activity, regardless of whether they are affiliated to the trade union organization or not.
Milei's proposal was for companies to allow workers to choose whether or not to contribute to unions. With the court's decision, salaries are temporarily subject to Union tax deduction again until the Appeals Chamber considers the measure.
MILEI'S PACKAGE
The package was defined as “the first step towards ending the country's decades of decadence”: “The country was on the way to collapse with inflation of 15,000%.” I signed a DNU to dismantle the repressive legal framework that has plagued our country brought decay.”
The laws repealed include:
- Gondola law Supermarkets were forced to display on the shelves products from smaller companies at lower prices in regular consumption categories;
- Tenancy law regulated real estate lease negotiations and, in the most recent version, prohibited dollar contracts;
- Supply law allowed the government to take action on prices, such as setting maximum levels and sanctioning companies that increased prices without justification.
The decree also opens the possibility for Argentine clubs to switch to SAFs (Football Societies) based on internal voting among members.
“It's just the first step. In the coming days, we will convene extraordinary sessions of the National Congress and send a legislative package asking Congress for cooperation to advance this process of change,” Milei said.