Seized by the largest trade union center in the country (CGT), the courts ruled that the measures must first be examined and approved by Parliament.
Hard blow for the new Argentine President Javier Milei: a court announced that it would suspend a set of labor law reforms that he had announced.
These included extending the trial period from three to eight months, reducing severance pay, limiting the right to strike and authorizing the dismissal of employees who participated in a blockade.
Alejandro Sudera, one of the three judges, said the administration had exceeded its powers by decreeing labor changes, which must first be reviewed and approved by Parliament.
The country’s largest trade union center (CGT), which had taken legal action, applauded the court’s decision, declaring that it “puts an end to regressive, worker-hostile labor reform.”
Javier Milei’s government said it would appeal the court’s decision.
Since his inauguration on December 10, Milei has devalued the country’s currency by 50%, cut transport and energy subsidies, and declared that his government would not renew the contracts of more than 5,000 state employees hired before taking office.
He says he wants to transform Argentina’s economy and reduce the size of the state to deal with rising poverty and annual inflation which is expected to reach 200% by the end of the year.
These measures sparked a wave of protests in Buenos Aires, the Argentine capital.