BUENOS AIRES, Argentina (AP) — Argentina’s largest labor union filed a lawsuit Monday to block sweeping labor reforms pushed by President Javier Milley that seek to fundamentally change labor relations in the South American country.
The reform, approved by Congress on Friday, gives employers greater flexibility in hiring, firing, severance pay and collective bargaining and seeks to limit the historic power of unions.
“This law is a serious violation of collective and individual rights and a clear violation of constitutional principles,” the General Confederation of Labor (CGT) said in a statement after its lawyers filed a complaint with a Buenos Aires court.
The complaint challenges the constitutionality of the reform, arguing that it violates both the “principle of progress,” which prevents the reversal of labor rights, and the “principle of protection,” a legal standard designed to prevent employer abuse and restore balance to the workplace.
“The damage is not a collateral effect of isolated decisions but is consistent with the national government’s economic and social plans,” the CGT said, warning that more than 300,000 jobs had been lost since Mr Mire took office in late 2023, ordering austerity and deep economic reforms.
On Friday, after it was approved, Mire called the reform “historic.” “We modernized our workforce,” he said.
The legislative process is fraught with tensions between the ruling and opposition parties. Friction escalated last month during a debate on the bill in the House of Commons, with the GCT launching a 24-hour nationwide strike and demonstrators from various left-wing groups clashing with police outside parliament.
Milley sees changes to Argentina’s half-century-old labor laws as crucial to his efforts to attract foreign investment, boost productivity and boost job creation, since about two-fifths of Argentina’s workers are employed off-the-books.
Unions argued the law would weaken worker protections that have existed since the rise of Peronism, Argentina’s dominant populist political movement, in the 1940s.
The court must now decide whether to admit or reject the capital gains tax claim, a decision that could lead to an injunction halting the reforms until a judge makes a final ruling. ___
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