BUENOS AIRES, March 31 (UPI) -- A court in Argentina has temporarily suspended parts of a labor reform promoted by President Javier Milei and approved by Congress in February, dealing a setback to a cornerstone of his economic agenda aimed at making the labor market more flexible.
The decision Monday follows a legal challenge filed by the General Confederation of Labor, or CGT, the country's largest labor union federation. Judge Raúl Horacio Ojeda granted the request and temporarily blocked 82 of the 218 articles included in the so-called Labor Modernization Law.
In the ruling, Ojeda said "serious and significant" indications are that some provisions may conflict with the Constitution. He pointed to potential risks to fundamental labor rights, including union freedom and protections for existing working conditions.
Based on that assessment, the court issued a precautionary measure that suspends enforcement of the affected provisions until a final decision on their constitutionality.
The labor reform is central to Milei's strategy to reduce labor costs, ease hiring and firing rules and attract investment to Argentina. The initiative seeks to simplify regulations, lower litigation risks and promote formal job creation while improving economic competitiveness.
