Argentina court suspends Milei labor reforms

BUENOS AIRES

Argentine judges on Wednesday suspended labor law changes that form part of a mega-decree of sweeping economic reforms and deregulation announced by the country's libertarian new president, Javier Milei.

The CGT trade union body had challenged the changes, which technically took effect last Friday, on grounds that they erode basic worker protections such as the right to strike and parental leave.

The three judges of Argentina's labor appeals chamber froze elements of Milei's decree which, among other things, increased the legal job probation period from three to eight months, reduced compensation in case of dismissal, and cut pregnancy leave.

Judge Alejandro Sudera questioned the "necessity" and "urgency" of the decree Milei signed on December 20 — just days after taking office — and suspended the measures until they can be properly considered by Congress.

Some of the measures appeared to be "repressive or punitive in nature" and it was not clear how their application would aid Milei's objective of "creating real jobs," Sudera added in a ruling distributed to the media.

Solicitor General Rodolfo Barra told AFP that the government will appeal Wednesday's ruling.

Thousands took to the streets last week to protest the reforms of self-proclaimed "anarcho-capitalist" Milei, who won elections in November with promises of slashing state spending as Argentina deals with an economic crisis, including triple-digit inflation.

The CGT has called a general strike for January 24.