BUENOS AIRES, Argentina (AP) – President Javier Millei announced Wednesday that a court will block changes to labor rules he recently announced as part of sweeping deregulation and austerity measures aimed at reviving Argentina's struggling economy. This resulted in a judicial blow.
The three-judge court's decision came in response to a legal challenge brought by the General Confederation of Labor, a major trade union group, which argued the changes would affect workers' rights. It is something that
Argentina's Millei cuts 5,000 government jobs, contract not renewed
Millais's decree, announced in December, extends probationary periods from three to eight months, reduces severance pay and opens up the possibility of dismissal for some workers who participate in blockades during protests. Several changes to labor regulations were enacted, including the recognition of
Alejandro Zudela, one of the three judges, said the government exceeded its authority to decree labor reforms and that they must first be debated and approved by Congress.
Ms Millay's government said it would appeal the court's decision.
An Argentine court has ruled that some of newly elected President Javier Milais' labor reforms exceed his authority.
The trade union confederation praised the court, saying the ruling “put an end to regressive and anti-worker labor reforms.”
Labor activists have questioned whether Mr Millais, a self-proclaimed anarcho-capitalist who has long railed against the country's “political caste”, will be able to bypass parliament and use emergency legislation to trigger the measures.
On December 20, a few days after taking office as the new president, Millay announced drastic efforts to transform Argentina's economy, including relaxing government regulations and allowing the privatization of state-owned industries. Libertarian economists made about 300 changes.
The move sparked protests in Argentina's capital Buenos Aires.
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Since taking office on December 10, Milley has devalued the country's currency by 50%, cut transportation and energy subsidies, and said the government will not renew the contracts of more than 5,000 state employees it hired before taking office. .
He has said he wants to transform Argentina's economy and reduce the size of the country to combat rising poverty and annual inflation expected to reach 200% by the end of the year.
