Argentina Court Blocks Milei’s Third Try to Limit Strikes

A labor court in Argentina has temporarily blocked President Javier Milei's decree that expanded "essential services" during strikes, maintaining the status quo while legal challenges proceed. The third failed attempt underscored the strong union power in Argentina.  

HR Policy Global’s Take: The ruling blocks the immediate implementation of measures that could have limited workers' rights to strike, a fundamental aspect of labor law in Argentina. Despite the challenges, Milei is expected to continue his efforts, highlighting ongoing tensions between the government and unions. 

Background: Milei’s administration tried twice to enact these measures. The first attempt, a "mega-decree," was banned by a court, and the second, the Bases Bill, was altered after negotiations, removing articles that limited strike rights. 

This decree arrives amid a turbulent week. In Tierra del Fuego, unions held a 24-hour protest against Milei's plan to cut and eventually scrap import tariffs on electronics, affecting major manufacturers in the region. 

The decree: The new decree expands the list of "essential" workers, requiring 75% workforce availability during strikes, including in education, telecommunications, and customs services. Additionally, "transcendental services" must maintain 50% operation, affecting industries like medication production and food manufacturing. 

This move was discreetly included in an unrelated decree, prompting the main trade union federation, CGT, to announce a legal challenge, arguing it suppresses constitutional rights without debate. 

The court’s decision: Judge Moira Fullana emphasized the need for parliamentary debate on modifying the right to strike, citing constitutional guarantees. This decision reflects a broader judicial reluctance to allow unilateral executive actions that bypass legislative processes. 

Impact on employers: the ruling means employers must still navigate existing strike laws without expanded exemptions. Companies previously hoping to rely on the decree to maintain operations during strikes will need to manage workforce disruptions under existing legal frameworks. 

What’s next: As the Supreme Court prepares to review the decree's constitutionality, both employers and unions face uncertainty.