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Argentine Court Rejects President Milei’s Labor Reforms - 177 Views

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Argentine Court Rejects President Milei’s Labor Reforms

President Javier Milei’s reform plans hit the rock as an Argentine court overturned the labour rules proposed by the president, which aimed to ease restrictions on firing workers. The court ruled that the regulations were unconstitutional, asserting that Milei’s government exceeded its authority by decreeing them and emphasizing the need for approval by Congress.

President Milei had announced a decree in December seeking various changes to labor rules, including extending job probation from three to eight months, reducing severance compensation, and permitting the dismissal of workers participating in blockades during protests. The proposed changes faced legal challenges, and in early January, the appeals court temporarily suspended the new regulations following a legal challenge from the General Labor Confederation, the main union group.

The court’s recent ruling can be appealed before the Supreme Court, but there is no immediate indication from Milei’s administration regarding their course of action.

President Milei, a self-described libertarian and anarcho-capitalist, has been pursuing aggressive economic measures since taking office in December. These measures include a 50% devaluation of the country’s currency, subsidy cuts in transport and energy, and a refusal to renew contracts for over 5,000 state employees hired before his term began.

The reforms and proposals have triggered protests in Buenos Aires, the capital of Argentina. Despite facing a one-day general strike organized by the largest union last week, some government officials downplayed the impact of the protest. The president’s push for significant economic changes continues to generate both support and opposition in the country.

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