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Javier Milei took office on December 10th
4 hours ago
The new Argentine President Javier Milei published in the early hours of this Tuesday (December 26) a decree banning the renewal of contracts for civil servants hired less than a year ago.
In practice, this will result in the dismissal of thousands of public employees whose contracts expire in December.
The total number of workers and services affected was not disclosed by Casa Rosada, but Argentine newspapers Clarín and La Nation estimate around 7,000 layoffs based on government sources.
In addition, another 45,000 longterm state employees were placed under “observation” for 90 days meaning they could be fired after that period.
The measure had already been announced by Economy Minister Luis Caputo and is part of a large package of measures known as the “Decree”.
According to the government, the aim of the measures (including layoffs) is to rationalize the state apparatus and reduce the budget deficit.
According to the government, the changes will remove bureaucracy and obstacles that make life difficult for Argentinians and help boost currently neglected economic sectors and modernize the state.
The government did not reveal which salary ranges will be most affected, nor how much it plans to save through the layoffs.
There are also no details available about the audit being conducted to assess the retention or dismissal of the 45,000 employees who will be “under observation” for 90 days.
According to Indec (Argentine Statistical Institute, equivalent to IBGE), Argentina currently employs around 338,000 people in the federal administration.
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Milei's government faced protests after the “decree” was published
The layoffs affect employees of the executive branch, public or majority stateowned companies and autonomous government bodies including supervisory authorities and administrations of hospitals and research institutes.
Workers who meet transgender and disabled quotas will not be included in the measure.
According to the decree, there should be mass layoffs, i.e. without individual case analysis.
It is not clear how the measure will affect the functioning of the affected public services, but the government says it is possible that those responsible for each area will request exemptions in order to maintain contracts that justify the request.
This is the new government's second measure regarding public servants the first was the establishment of facetoface work for the entire public service.
The government says it intends to take measures involving the “highest level” of civil servants, including salary freezes and pay cuts of up to 15%. There is no forecast for job cuts for this group, nor when a possible new regulation will be published.
Protests and litigation
There is no guarantee that the changes promoted by Milei are permanent.
A lawsuit challenging the legality of the “decree” is underway in the Argentine court, and the Argentine Congress has already shown signs that it may block some of the measures.
The “decree” can be rejected by both houses of Congress. On Tuesday (26), presidential spokesman Manuel Adorni appealed to parliamentarians to approve the package of measures.
“Deputies and senators must decide whether to support what the people voted for, the change, this Argentina that we want for good people and without the weight of the state, or whether we will continue to hinder this change and hinder what the Majority of people want it,” Adorni said at a press conference.
The changes were made by Milei through a legal instrument called the Decree of Necessity and Urgency (DNU).
According to the Constitution, the DNU can only be used in “extraordinary circumstances” in which Congress is unable to follow the “normal procedures” for passing laws.
Shortly after the DNU was signed last week, the “decree” was met with numerous protests including the famous panelaços, in which Argentines make noise with pans to express their dissatisfaction.
Milei argues that government regulation during the last Kirchner governments stagnated the economy and crowded out investment.
According to the Argentine press, union leaders are already mobilizing for a general strike against the layoffs and several economic measures.
However, they could face difficulties as Milei launched a protocol “to ensure public order” in the first week of government, which provoked strong criticism.
Social movement representatives and academics have expressed concern about the measure, saying it could restrict the right to protest in the country.