Argentina strike targets Milei’s plan on economy

A nationwide general strike paralyzed Argentina for half a day on Wednesday as activists expressed anger over the disruptive policies implemented by President Javier Milei, who was sworn in on Dec 10.

The General Confederation of Labor, the largest trade union in the country, led the 12-hour strike to mark its opposition to an omnibus bill Milei presented to Congress on Dec 27, which would drastically reshape the economy.

The strike began at midday and lasted until midnight. Retail outlets and banks closed, airlines canceled flights, buses stopped plying and workers took to the streets to show their displeasure. The protests were mostly peaceful.

The bill that Milei sent to Congress has 664 articles that range from allowing the privatization of 41 public companies, eliminating the presidential primary vote and introducing a broad 15 percent tax on most exports.

“People have been affected, working people more than anybody else have been affected, by everything that has happened since the Milei government took power,” said Bruno Tevez, general manager of a travel agency in Buenos Aires.

Milei is the first president in the country’s history to have to deal with a national strike so early in his term. And he moved quickly to introduce his omnibus bill. Yet weeks into his presidency, Milei’s policies have led to a sharp 115 percent devaluation of the Argentine peso, and triggered a surge in inflation that hit 211 percent in 2023.

Tevez also cited the devaluation of the peso, elimination of fixed prices and subsidies for essential services for workers, like transport, as salaries have not been adjusted to match these changes.

Facing pressure, the government modified the president’s omnibus bill this week to ensure an easier passage through Congress, where Milei’s coalition has a minority. A key change is that exceptional powers granted to the president to implement economic reforms would last for only one year instead of almost two.

Some critics have denounced the reforms, saying previous government policies have not worked and that the strike was a knee-jerk reaction.

In Argentina’s recent history “there has never been such a quick strike. The government has just been named and took its first decision, and the next month there is a strike”, said Nicolas Marquez, a lawyer and writer.

The Argentine government responded by threatening to dock a day’s pay from state employees who participate in the strike, although the move appeared to have little effect on protesters.

Increased prices for transportation, food and basic services have sparked widespread public dissatisfaction and led to the strike.