Judicial decision in Argentina suspends labor reform provided for in the 'Milei Decree'
The decision of the Labor Court in Argentina is temporary and can still be reversed. Announced on December 20, the Decree of Necessity and Urgency (DNU), proposed by Javier Milei, is being contested by unions.
The precautionary decision was issued by the National Labor Chamber - Photo reproduction/Internet
A Argentine Labor Court determined this Wednesday (03), the suspension of part of the extensive decree issued by Javier Milei, the current president of the country. This decision specifically affects the measures related to the implementation of the controversial labor reform proposed in the presidential decree. This decree has been the subject of intense debate, especially with regard to proposed changes to labor laws.
The Context of the Decree
The 'Milei Decree' was seen by many as an attempt to liberalize the Argentine labor market by removing some of the protections historically guaranteed to workers. Economist Milei, known for his libertarian views and criticism of the role of the state in the economy, defended the need to make labor laws more flexible to promote economic growth.
The decree proposed significant changes, including the flexibility of employment contracts, as increasing the trial period to 8 months and participating in demonstrations as a legal reason for dismissals, in addition to the reduction of labor benefits and the simplification of dismissal processes, such as, for example, changes to the professional compensation system who leave a company. However, the measure met resistance from unions, opposition parties and sectors of civil society, who argued that such changes could make working conditions precarious and harm workers' rights.
The Court Decision
The judicial decision that suspended the implementation of the 'Milei Decree' is of a precautionary nature and was issued in response to a lawsuit filed in the Labor Court by an Argentine union. The court determined that some of the changes proposed in the decree could violate the constitutional rights of Argentine workers. There is still a controversy about which court is appropriate to deal with this matter. The Labor magistrates stated that, until the issue of appropriate forum is resolved, the execution of the measure remains suspended.
Decree of Mercy
Announced on December 20, the Necessity and Urgency Decree (DNU) aims to reform or revoke more than 350 regulations. Among the proposed changes, the deregulation of satellite internet service and private medicine, the flexibility of the labor market and the repeal of several national laws stand out. Furthermore, the measures include the conversion of several state-owned companies into public limited companies, simplifying the privatization process of these institutions.
Among the measures announced by Milei are:
Repeal of the Rent Law.
Repeal of the Supply Law.
Repeal of the Gondola Law.
Repeal of the National Procurement Law.
Revocation of the Price Observatory of the Ministry of Economy.
Repeal of the Industrial Promotion Law.
Repeal of the Trade Promotion Law.
Revocation of regulations that prevent the privatization of public companies.
Repeal of the state companies regime.
Transformation of all State companies into public limited companies for their subsequent privatization.
Modernization of the work regime to facilitate the job generation process.
Reform of the Customs Code to facilitate international trade.
Repeal of the Land Law.
Modification of the Fire Fighting Law.
Revocation of sugar mills' production obligations.
Release of the legal regime applicable to the wine sector.
Revocation of the national mining trading system and the Mining Information Bank.
Authorization to transfer the total or partial share package of Argentine airlines.
Implementation of the open skies policy.
Modification of the Civil and Commercial Code to reinforce the principle of contractual freedom between the parties.
Modification of the Civil and Commercial Code to ensure that contractual obligations in foreign currency are paid in the agreed currency.
Modification of the regulatory framework for prepaid medicines and social works.
Elimination of pricing restrictions in the prepaid industry.
Incorporation of prepaid medicine companies into the social works regime.
Establishment of electronic medical prescriptions.
Modifications to the regime for pharmaceutical companies to promote competition and reduce costs.
Modification of the Corporation Law so that football clubs can become corporations.
Deregulation of satellite Internet services.
Deregulation of the tourism sector.
Incorporation of digital tools for automotive registration procedures.
