Setback for Argentine President Milei as top court suspends his 'mega-decree' labour reforms

Newly elected far-right Argentine President Javier Milei has received his first setback since coming to power last year. On Wednesday (Jan 3), a top Argentine court suspended a package of labour reforms he decreed last month amid much criticism from rivals.

The National Chamber of Labor Appeals heard the case and temporarily blocked enforcement of Milei's "mega-decree" that included over 300 regulations.

The judges presiding over the case said the labour measures were temporarily halted until the court can decide whether they are allowable under the Argentine law without congressional approval.

The General Labor Confederation (CGT) - the nation's largest union, had filed an injunction saying the changes eroded basic worker protections such as the right to strike and parental leave.

The powerful CGT has long been against the reform proposal by Milei and is planning a nationwide strike, set to begin at the end of the month. However, after receiving the ruling in its favour, CGT said it "halts (Milei's) regressive and anti-worker labour reform".

The Argentine president had earlier rationalised his decision saying the labour reforms were aimed at deregulating the South American country'seconomy which has been in a rut. After the court verdict, his government released a statement saying they planned to appeal the suspension.

After taking office in December, President Milei has undertaken some drastic policy changes that include labour reforms as well as pulling out of the BRICS grouping. Last week, Milei told his counterparts from Brazil, Russia, India, China and South Africa that the timing was not opportune for Argentina to join the grouping.

Milei's unexpected win

Milei managed a political upset in November last year by clinching Argentina's presidential run-off elections. Milei's campaign was marked by unconventional tactics, including wielding a chainsaw on the trail.

His economic proposals, notably the bold idea of "detonating" the central bank and endorsing the US dollar as the official currency, struck a chord with voters disillusioned with traditional politics and desperate for a transformative approach.

While Milei's win resonated with a significant portion of the electorate frustrated with economic hardships, critics remain sceptical of his untested leadership and unconventional policy proposals.

The comparison with populist leaders like Trump and Brazil's Jair Bolsonaro raises concerns about the potential consequences of unorthodox governance.

(With inputs from agencies)