Milei’s maternity leave reforms are blocked

Argentinian National Chamber of Labor reins in president’s plans to cut time off for new mothers

JAVIER MILEI’S proposal to cut maternity leave as part of his “shock treatment” reforms has been blocked by Argentina’s courts.

Mr Milei, a self-described “anarcho-capitalist”, introduced a package of reforms aimed at deregulating the South American country’s economy, including cuts to severance pay.

On Wednesday night, the National Chamber of Labor Appeals temporarily blocked the reforms, which would have limited maternity leave, increased probationary periods from three to eight months, and limited workers’ right to strike for more favourable conditions. Seven thousand civil service jobs were also due to be cut.

Unions said the changes undermined basic protections for workers. The suspension marks the first major setback for Mr Milei after he won November’s run-off election on pledges to fix the economy, which is battling triple-digit inflation and crippling poverty rates.

Argentinian presidents are allowed to use a “Necessity and Urgency Decree”, known by the Spanish acronym DNU, in exceptional situations to handle natural or social catastrophe, allowing governments to quickly modify laws without waiting for a debate in Congress.

Mr Milei justified the DNU by saying that “Argentina requires an urgent change of course to avoid disaster”. After being sworn in he said that the country needed “shock treatment”. The changes technically took effect last Friday. However, the powerful General Labor Confederation (CGT) union staunchly opposed the labour reforms and presented an injunction to the court.

Judge Alejandro Sudera questioned the “necessity” and “urgency” of the decree, and said some of the measures appeared to be “repressive or punitive in nature”. The court is now required to make a final ruling on whether the reforms are allowable under Argentine law without congressional approval.

The CGT celebrated the ruling, saying it “halts (Milei’s) regressive and antiworker labour reform,” while the Association of State Workers said it was “an almost knockout blow”.

The Milei administration said it plans to appeal against the suspension.

The DNU also includes sweeping changes to the state, including introducing rent regulations, converting state companies into public limited companies, and terminating some 7,000 civil service contracts.

Late into the evening that the DNU was first presented, locals took to the streets to bang pots and pans, known as a cacerolazo, a typical form of protest by Argentines. A rally held at the end of December also saw thousands protest the DNU, while a nationwide strike is planned for Jan 24.

The 53-year-old is set to face more obstacles with his “omnibus bill”, particularly in Congress where his administration does not hold a majority.

In a speech on Dec 31, Mr Milei warned Argentines who opposed his reforms there would be “a social catastrophe of biblical proportions” if his proposals were blocked.