BUENOS AIRES (Reuters) – A top Argentine court on Wednesday suspended a package of labor reforms decreed by new President Javier Milei last month, after the nation’s largest union filed an injunction.
The ruling by the National Chamber of Labor Appeals temporarily blocks enforcement of the labor regulations in Milei’s so-called “mega-decree,” which includes more than 300 measures aimed at deregulating the South American country’s economy.
Labor elements of the decree include the repeal and modification of laws related to employment contracts, terms for dismissal, severance payments, and more.
The powerful General Labor Confederation (CGT) union has staunchly opposed those measures, planning a nationwide strike set to kick off at the end of the month.
The dispute highlights the roadblocks ahead for Milei, who won November’s run-off election under the promise of rescuing the economy, which is battling triple-digit inflation, a lack of central bank reserves and increasing poverty.
The judges behind the decision said the new labor measures were being temporarily suspended until the court can make a final ruling on whether they are allowable under Argentine law without congressional approval.
The CGT on Wednesday celebrated the ruling, saying it “halts (Milei’s) regressive and anti-worker labor reform.”
The Milei administration said in a statement it plans to appeal the suspension.
The decree can be repealed in Congress if a motion to do so passes the lower house and the Senate. Milei’s party does not hold a majority in either house.
Congress is currently in a special session called by Milei through the end of the month in an attempt to pass a sweeping omnibus bill, which critics have dubbed unconstitutional.
(Report by Marta Lopez; Writing by Maximilian Heath and Kylie Madry; Editing by Rosalba O’Brien)
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