President Javier Milei faced the third general strike of his 16-month-old presidency on Wednesday, as opposition grows to his fiscal austerity measures and he awaits confirmation of a new US$20-billion loan agreement with the International Monetary Fund (IMF).
Thursday's labour walkout was called by unions to protest his brand of "chainsaw" austerity.
The country’s three main trade union federations, grouped together under the CGT umbrella union, mobilised from midday in front of Congress, joining a weekly demonstration by social organisations and pensioners who are demanding demand a change in the government’s economic policies.
The demo serves as a prelude to a 24-hour nationwide work stoppage beginning at midnight, backed by dozens of unions.
"In the face of intolerable social inequality and a government that ignores calls for better wages and a dignified standard of living for all, the workers are going on strike," CGT organisers said in a statement.
"The cost [of austerity] for vulnerable sectors is infinitely higher than is suggested by the monthly inflation index," said CGT secretary general Héctor Daer, speaking ahead of the strike.
The action is set to paralyse trains and planes, and shutter schools and banks.
National carrier Aerolíneas Argentinas, which Milei wants to privatise, announced the cancellation of 258 flights, affecting some 20,000 passengers. Bus drivers were not part of the action.
The protest coincides with a surprise trip by President Milei to Paraguay, where he was scheduled to meet his counterpart, Santiago Peña, in Asunción on Wednesday.
The strike comes at a pivotal moment for the government, following the IMF's announcement on Tuesday that a technical agreement with Argentina for the US$20-billion loan is ready for review by the board "in the coming days."
Argentina is hoping to receive an advance of at least 40 percent of the loan to ease mounting pressure on the exchange rate, which has led the Central Bank to sell over US$1.8 billion from its reserves in recent weeks.
All public transport unions have joined the strike, with the exception of the bus drivers' union — a factor that may lessen the overall impact of the protest.
Police on Wednesday cordoned off the area around Congress as part of a broader security operation, while signs supporting the strike lined the plaza in front of the legislative building.
The march is also an expression of solidarity with the weekly protests held by pensioners outside Congress, who are demanding an increase in their benefits.
Retirees have been among the hardest hit by the government's austerity policies, as the administration looks ahead to legislative elections in October.
This marks the third general strike against Milei's government and reflects growing social unrest in response to sweeping budget cuts, which have led to tens of thousands of lay-offs and a decline in consumer spending for 15 consecutive months.
Despite the discontent, Milei retains an approval rating of between 40 percent and 45 percent, according to recent polls.
His administration has managed to reduce inflation from 211 percent in 2023 to 118 percent, helping to bring poverty levels back down to 38 percent — the same figure recorded in 2023 — after they had surged to 52.9 percent during his first six months in office.
Unions say the positive macroeconomic figures bely the average Argentine's loss of purchasing power.
Milei has sought a new US$20-billion loan from the International Monetary Fund, adding to an existing US$44 billion it already owes.
Milei says the money will allow his government to pay off its debts to the Central Bank and help "exterminate" inflation – a key goal as the mid-term legislative campaign approaches, with his party seeking to increase its representation in Congress.
The IMF on Tuesday announced it had reached a preliminary loan agreement with Argentina, which must now be approved by its executive board.
A final decision could come "in the coming days," according to the lender.
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