Unions challenge Milei's flagship labour reform in court

Argentina’s largest trade union federation, the Confederación General del Trabajo (CGT), on Monday launched a constitutional challenge to President Javier Milei's flagship labour reform, three days after it was adopted.

Milei's Labour Modernisation Law allows working days of up to 12 hours, reduces severance pay, limits the right to strike and lowers employer taxes, among other provisions. 

Its adoption last Friday handed a victory to the La Libertad Avanza president as he pushes to boost hiring by loosening what he describes as Argentina's antiquated labour laws. Its critics say the legislation rolls back hard-won worker rights.

The AGAE (Asociación Gremial de Abogacía del Estado) state lawyers association challenged the law as unconstitutional, arguing that it "harms workers," the union's deputy leader Roberto Álvarez wrote on social media.

The CGT, which called a general strike earlier this month that ground Argentina to a halt, has also announced legal action.

"The misnamed 'modernisation' seriously affects collective and individual rights, expressly violating constitutional principles," the CGT said in a statement released after filing its claim of unconstitutionality in court.

The umbrella union grouping believes that the new law, which has not yet been enacted, violates "the principle of progressivity (or non-regression), which prevents the adoption of unjustified measures that represent a setback in acquired labour rights.”

On Monday, the CGT organised protests in several cities, insisting that bringing back labour practices that are "close to servitude or slavery" would not create jobs.

Milei argued that Argentina's labour laws discouraged formal hiring by being overly restrictive. Over 43 percent of workers in the country lack formal employment contracts.

Polls show Argentines divided on the reform, with a recent survey finding 48.6 percent in favour and 45.2 percent against.

– TIMES/AFP/NA