Javier Miley calls himself an “anarcho-capitalist.” Photo: Tomás Cuesta/REUTERS
Javier Miley's proposal to cut maternity leave, part of his “shock therapy” reforms, was blocked by Argentine courts, a blow to the new president.
Mr Miley, a self-described “anarcho” -capitalist”, presented a package of reforms aimed at deregulating the economy of the South American country, including reducing severance pay.
On Wednesday night, the National Labor Appeal Board temporarily blocked reforms that would limit maternity leave, increase probation periods from three to eight months and limit workers' right to strike for better conditions. Seven thousand public service jobs were also to be cut.
Unions said the changes undermined basic protections for workers.
The removal was the first major setback for Mr Milei since after he won a runoff election in November on a promise to rebuild an economy struggling with triple-digit inflation and crushing poverty.
Argentine presidents are allowed to use the Decree of Necessity and Urgency, known by the Spanish acronym DNU, intended in exceptional situations to deal with natural or social disasters. Decrees allow governments to quickly change laws without waiting for congressional debate.
Mr. Miley, a libertarian, justified the 300-measure DNU by saying that “Argentina requires an urgent change of course.” to avoid disaster.”
After being sworn in, he said that the country needed “shock therapy.”
The National Labor Appeals Chamber blocked reforms planned by Javier Miley Photo: Tomas Cuesta/REUTERS
Technically, the changes came into force last Friday. However, the influential trade union General Confederation of Labor (CGT) strongly opposed labor reforms and filed a court injunction.
On Wednesday, three judges temporarily halted labor reform, saying it was unclear how they would “fix the situation.” Judge Alejandro Sudera questioned the “necessity” and “urgency” of the decree and said some of the measures were “repressive or punitive.”
The court must now make a final decision. on whether reforms under Argentine law are permissible without congressional approval.
The CGT welcomed the decision, saying it “stops Miley's regressive and anti-worker labor reform,” while the Civil Servants Association said it “almost knockout blow.”
The Milei administration announced that it plans to appeal the suspension.
The DNU also includes sweeping changes to the state, including the introduction of rent rules, the conversion of state-owned companies into public limited companies and the termination of about 7,000 public service contracts.
< p>Late in the afternoon, when was first introduced DNU, locals took to the streets to bang pots and pans, known as cacerolazo, a typical form of protest among Argentines. At a rally in late December, thousands of people protested against the DNU in the central Plaza de Mayo square, and a nationwide strike is planned for January 24.
The 53-year-old faces more protests. obstacles with his “omnibus bill,” especially in Congress, where his administration does not have a majority.
In a Dec. 31 speech, Mr. Miley warned Argentines who opposed his reform package that there would be a “social disaster biblical proportions” if his proposals are blocked.
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