Argentine Unions Challenge Milei’s Labor Reform in Court

Buenos Aires – Argentina’s General Confederation of Labor (CGT) has launched a legal challenge against President Javier Milei’s recently approved labor reform, deeming it unconstitutional. The move comes after the reform was validated by Parliament on Friday and sparked protests across the country.

Key Provisions of the Labor Reform

The reform, dubbed the “modernization of work” by proponents, aims to facilitate layoffs, reduce compensation scales, and extend the working day to up to 12 hours. It also expands the definition of “essential” services, potentially limiting the right to strike, and allows for the splitting of abandon. Unions have criticized these measures as a rollback of worker protections, labeling them as a return to “eras close to servitude or slavery.”

CGT’s Legal Challenge and Protests

The CGT filed a class action lawsuit on Monday, arguing that the law violates constitutional principles. Simultaneously, the union confederation mobilized protests in several cities, asserting that the reform undermines the rights of workers. According to the CGT, reducing worker rights will not improve employment rates, attributing Argentina’s economic challenges to a lack of investment and economic growth rather than existing labor laws.

Government’s Defense and Public Opinion

President Milei views the passage of the labor reform as a significant political victory in his broader deregulation agenda. He welcomed the reform during his annual State of the Nation address on Sunday. The government maintains that the changes are necessary to stimulate employment and formalize the workforce.

Public opinion on the reform is divided. A recent poll indicates that 48.6% of Argentines approve of the changes, while 45.2% oppose them.

Additional Labor Action

A teachers’ strike, demanding salary increases and protesting the labor reform, disrupted the start of the school year on Monday.

Constitutional Concerns

The Professional Association of State Lawyers has also expressed concerns, stating that the law “harms the worker” and is unconstitutional. Roberto Alvarez, the association’s deputy secretary, announced the legal action on social media.

The CGT specifically highlights two constitutional principles it believes are violated by the reform: the Principle of Progressivity (preventing unjustified setbacks in labor rights) and the Protective Principle (acknowledging the inherent power imbalance between employers and employees).