Reframing Argentina’s Public Sector Cuts and Social Impact

Lucas Berengua had 21 years of service at the National Weather Service. He was fired as part of a cost-cutting plan that affected 54 other workers. Bernegua was greeted with acclaim by colleagues at the moment of his abrupt farewell. Roberto Casazza was a researcher at the Mariano Moreno National Library (BNMM). An expert in the Renaissance, he had studied in Germany and England. His name appears on the list of 120 people laid off from the institution. Guadalupe Bargiela, 22, is blind. Her services were terminated at the National Disability Agency (ANDIS), along with 165 others. “I was notified by email.” Javier Milei’s shock plan is sweeping through the public sector, which he regards as a deep Argentine flaw. After six days of a holiday break, many state workers wonder if they will still have a job on Wednesday. Like a lottery with no prize, job security now hinges on chance.

In a recent corporate meeting, Milei expressed pride in the speed and surgical precision with which he is carrying out the “largest adjustment in history,” promising to cut 70,000 government contracts. His spokesman, Manuel Adorni, tempered that enthusiasm by saying that initially 15,000 will be affected. The Association of State Workers (ATE) cites 11,000 layoffs already completed and many more in progress. ATE called on those named on the “blacklist” to enter their offices by force with union support. Labor leaders are considering a fresh strike in opposition to what is being called the government’s “chainsaw plan” to drastically reduce public spending.

A giant, out of control elephant

Since emerging on television as a loudmouthed pundit, Milei has described the state as a congenital and demonic evil that not only interferes in private exchanges but also gobbles up money that could be used elsewhere. Before taking office, roughly 341,000 employees were counted across the country. The World Bank notes that Argentina sits mid-pack in comparing the public workforce to national population globally. The far right maintains, however, that the state is a roaring elephant that must be slimmed down relentlessly. Departures span secretariats, sub-secretariats, environmental and cultural agencies, and even the National Council for Scientific and Technical Research (Conicet). The message of doom reaches everyone. María Eugenia Inglesini, who earned a degree in Social Work two decades ago, says she chose public service despite private-sector offers for reasons not solely about salary. She has a disabled child and moved from the Ministry of Social Development to ANDIS, working with indigenous communities. “I have gone to places very inhospitable and helped ensure the state was present.” She was told she was no longer needed. “I’m left unemployed, but so are the therapists and psychologists who support my child every day.”

Telegrams announcing terminations or non-renewal reach workers on medical leave, those in the transgender/trans quota, pregnant women, and even union delegates. The Defense Minister, Luis Petri, has just dismantled the department that investigates crimes from the last military dictatorship (1973-83), leaving magistrates, judges, and human rights advocates puzzled.

Growing concern

The so-called chainsaw’s edge is visible in a country with 57.4% poverty and where the economy shrank 4.3% from the previous year. Argentina is moving toward pandemic-like levels of inflation, with a February inflation rate close to 60%. Consumer spending has fallen nearly 30%. At the same time, public works have been halted. Recently, 130 construction workers on a new nuclear reactor in Campana were laid off, leaving the project unfinished. The retrenchment also hits the private sector that has begun its own wave of layoffs. Yet Milei’s approval rating remains near 50% in a recent poll. People recognize the social impact of the adjustment but still trust the president.

The Catholic Church voiced concern for those who lost work without support. “People left on the roadside. This wound is terrible,” said Archbishop Oscar Ojea, head of the Argentine Episcopal Conference, in his Easter message. “If globalization hardens our hearts and makes us indifferent to neighbors who have nothing, we can no longer call ourselves Christians.” Even Mirtha Legrand, a TV icon whose opulent dinners function as a weekly political forum, expressed sympathy for those left without means. “It’s depressing for the country. It saddens me to know there are people who don’t eat.”

The uncle of Milei, out on the street

The loss of work opens doors to despair for people who can’t pay rent and feel exposed. One such person is Juan José Milei, the president’s uncle. Known as Chicho, he is a self-employed worker who now rides a bicycle to deliver meals and other items ordered via a smartphone app. He lacks social security and private health coverage. He says he has been cheated and soon his house, provided as a mortgage guarantee, will be taken away.

In the run-up to eviction, he has spoken out. “I’ll end up on the street because I have nothing.” The father’s brother has a subtle sympathy for Peronism that has branded him the family’s black sheep. He asked his nephew not to forget those with less, certain his voice will go unheard.

Citations: Data and statements drawn from public records and media reports on policy changes, economic indicators, and social reactions. The above synthesis references the accounts of workers affected by public-sector layoffs, statements from government officials, and commentary from civil society leaders and religious figures. Attribution: Contemporary Argentine news analysis and official statements from institutional bodies and leaders.

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