Argentina’s Labor Reform Pause: Courts Block Temperature of Deregulation

Argentina’s Labor Appeals Chamber in the National Chamber has temporarily paused a sweeping labor reform issued by the president, Javier Milei. The decree of necessity and urgency, enacted to accelerate extensive deregulation of the economy, faces a halt as of this Wednesday. The move signals a pause in the reform push while questions about its scope and impact are debated, with the economy and labor markets in the balance as the government seeks to press forward on deregulation goals.

Judges Andrea García Vior and Alejandro Sudera released a statement on the same day, clarifying that the injunction effectively suspends the parts of the decree that affect study subjects which had taken effect on December 29. The court’s intervention highlights the judiciary’s role in scrutinizing executive actions and ensuring that the changes conform to constitutional standards while debates over policy direction continue.

Earlier, the National Confederation of Labor, CGT, rallied in opposition to the DNU, a gesture aligned with Peronist influencers who argue that the decree could undermine workers protections. They called for the judiciary to intervene and block the government’s labor reforms as envisioned by the decree. Separately, La Rioja Governor Ricardo Quintela urged the Supreme Court to declare the decision unconstitutional, adding another front in the legal and political contest over how far executive power should go in restructuring labor regulations.

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