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Court halts President Milei's labor market reforms

The Argentinian president's attempt to curtail workers' rights has failed for the time being. Milei's government intends to appeal against the court's decision.

Argentinian President Javier Milei recently signed a decree with a total of 30 measures. Photo.aussiedlerbote.de
Argentinian President Javier Milei recently signed a decree with a total of 30 measures. Photo.aussiedlerbote.de

Argentina - Court halts President Milei's labor market reforms

The ultra-liberal Argentine President Javier Milei has suffered a legal setback in his attempt to curtail workers' rights. A labor appeals court issued a temporary injunction suspending Milei's labor market reforms and thus an important part of his emergency decree, according to national media reports.

The country's largest trade union had previously filed a lawsuit against this. The court ruled that so many important labor market measures could not be enacted by decree bypassing Congress. The government will appeal against the decision, the TN television station reported, citing the public prosecutors.

Partial success for trade union federation CGT

In December, Milei had signed a decree with a total of 30 measures that provided for the repeal of several laws regulating the labor and real estate markets. According to the ruling, the labor market reforms, which provide for far-reaching changes such as the restriction of the right to strike, changes to compensation and a cut in trade union revenues, will be suspended.

For the CGT trade union confederation, the court's decision is a partial success. "This court decision puts the brakes on the regressive and anti-worker labor market reform," said CGT according to TN. The union had recently mobilized thousands of people to take to the streets against the new government's liberal economic course. It has also called for a general strike on January 24. The last strike by the left-wing Peronist trade union federation was in May 2019, which largely paralyzed the country.

Severe economic crisis

Argentina is in the midst of a severe economic crisis. The inflation rate is over 160 percent and around 40 percent of people in the once wealthy country live below the poverty line. South America's second-largest economy is suffering from a bloated state apparatus, low industrial productivity and a large shadow economy that deprives the state of many tax revenues. The national currency, the peso, continues to lose value against the US dollar and the mountain of debt is constantly growing.

Read also:

  1. The labor market reforms proposed by Argentine President Javier Milei, which include restrictions on the right to strike and cuts to trade union revenues, have been suspended due to a court ruling.
  2. The suspension of the labor market reforms is seen as a partial success by the CGT trade union confederation, which had recently organized demonstrations and called for a general strike against Milei's liberal economic policies.
  3. Argentine trade unions had previously filed a lawsuit against Milei's labor market reforms, arguing that they could not be enacted by decree without approval from Congress.
  4. Javier Milei's labor market reforms have been controversial, with many Argentines concerned about the impact they could have on the country's struggling labor market in the midst of a severe economic crisis.

Source: www.stern.de

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