Argentina: Court Suspends Pres. Milei's Labor Reforms

Facts

• A three-judge court on Wednesday suspended Argentinian Pres. Javier Milei's labor reforms, announced last month with the intention of reviving the nation's failing economy, stating they must first be discussed and approved by Congress.¹
• Milei's sweeping decree to deregulate the economy included plans to increase the job probation period by five months, reduce minimum severance packages, and allow employers to dismiss protesting workers.²
• However, one of the country's main trade unions, the General Labor Confederation, has challenged the rules in the National Chamber of Labor Appeals, claiming that they will infringe on workers' rights.³
• Judge Alejandro Sudera, who has ruled that the reforms must be paused until Congress evaluates their legality, questioned the 'necessity' and 'urgency' of the decree, noting that some of the measures were 'punitive or repressive in nature.'⁴
• Solicitor General Rodolfo Barra has already announced that the government intends to appeal Wednesday's ruling.⁵
• Milei, a far-right politician who won a surprise election victory in November, previously pledged to impose economic shock therapy and to undo 'decades of decadence' so as to bring Argentina's ailing economy back on track.⁶

Sources: ¹Associated Press, ²The Hill, ³US News & World Report, ⁴Barrons, ⁵France 24 and ⁶BBC News.

Narratives

• Left narrative, as provided by WSC Legal. Milei's anti-worker regulations had to come under judicial scrutiny as they were passed without adherence to the legislative process. His big-bang reforms to deregulate the South American country's economy are unconstitutional, regressive, and hostile.
• Right narrative, as provided by BBC News. Pres. Milei has inherited a bankrupt country. Only his austerity measures can reduce public spending, control triple-digit inflation, and pull the Argentines out of poverty. If his reforms are halted, it could lead to an epic social collapse with far-reaching repercussions.

Predictions