The labor reform promoted by Javier Milei and was suspended by the Argentine justice system. A labor court judge decided this Monday to accept the precautionary measure requested by the General Confederation of Labor (CGT) – the country’s main union organization – and left 82 of the 218 articles of the so-called Labor Modernization Law without effect for the moment. According to the magistrate, there are “serious and serious” indications of unconstitutionality and infringement of principles such as freedom of association and the inalienability of rights in the law. The Ultra Government will appeal the measure and the debate will continue in the courts.
It was the great achievement of the Milei Administration so far this year. Resisted by the unions, the new legislation makes hiring conditions more flexible, makes layoffs cheaper, enables the extension of the working day, makes the payment of overtime optional and reduces employer burdens, among other benefits for companies. Milei has maintained that “modernization” will make it possible to energize a labor market that has been stagnant for more than a decade.
Since its parliamentary approval, at least five courts in the country have already ruled, in the first instance, the unconstitutionality of some articles. The ruling known this Monday is the most extensive and responds to a presentation by the powerful CGT, historically led by Peronism.
Judge Raúl Ojeda, in charge of the National Labor Court 63, accepted the request for a declaratory action of certainty required by the union federation and suspended the application of 82 articles of the law. The purpose of the precautionary measure, he argued, is to avoid possible immediate and irreparable damages, while the underlying issue is resolved, that is, whether the new law respects or violates rights established by the national Constitution and current international treaties.
Among the articles suspended by the judge are those that limit the right to strike and authorize sanctions for union protests. Also others that affect collective bargaining with employers and introduce changes in the trial period for new employees, in the calculation of years of seniority and in the calculation of severance payments. The precautionary measure also leaves on hold the repeal of the teleworking law and the articles that limit the liability of companies when resorting to outsourced labor, among other points.
The leadership of the CGT celebrated the court ruling. “The misnamed Labor Modernization Law, a degradation of working conditions and a weakening of union action that violates international commitments assumed by Argentina in terms of human and labor rights,” the federation led by union members Jorge Sola, Octavio Argüello and Cristian Jerónimo said in a statement.
The Milei Government confirmed that it will appeal the measure, through the Ministry of Human Capital and with the sponsorship of the National Treasury Attorney. In a statement, the ministry headed by Sandra Pettovello expressed its rejection of “the attempts of those who, prioritizing corporate and sectoral interests, seek to hinder the necessary reforms to overcome unemployment and stagnation.”
