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LATIN AMERICA ADVISOR

LATIN AMERICA ADVISOR

A daily publication Of the dialogue

January 22, 2024

Will Argentina’s Milei Be Able to Win Labor Reforms?

Argentine President Javier Milei decreed a set of labor reforms, but the changes are now under scrutiny in the country’s court system.. // File Photo: Instagram of Javier Milei.

Q

  • Argentina’s national labor appeals court on Jan. 3 temporarily suspended a series of labor reforms that President Javier Milei decreed last month. The court said the labor reforms, including measures on dismissal terms and severance payments, were halted until it could rule on whether they could be enacted without the approval of Congress. The changes were part of a “mega decree” that included more than 300 measures to deregulate Argentina’s economy. What does Milei want to accomplish with the labor reforms, and how would they affect workers and Argentina’s economy? What chance do the changes have at being put back into force? What other parts of Milei’s “mega decree” are the most significant, and what will be their effects?

A

Carolina Costa, head of Latin America government affairs and multilateral engagement at RELX: “A libertarian economist, President Milei attracted popularity during his campaign by advocating deep public spending cuts and shock economic reforms. As such, the Dec. 20 announcement of the ‘mega decree’ (or ‘decretazo’), which would alter or discard more than 350 economic regulations, including many changes to existing labor provisions, came as no surprise. And, in a country prone to heavy state interventionism, the social backlash against the decree, combined with the decision issued by the National Chamber of Labor Appeals granting the National Confederation of Labor, Argentina’s powerful trade union group center, its request for suspension of the effects of the labor reform provided in the mega decree, also was…”

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