Argentine court suspends labor changes in a blow to President Milei's economic plan

A court in Argentina has delivered a blow to labor rule changes announced by President Javier Milei as part of sweeping deregulation and austerity measures aimed at reviving the country’s struggling economy

BUENOS AIRES, Argentina -- President Javier Milei suffered a judicial blow Wednesday as a court suspended labor rule changes he recently announced as part of sweeping deregulation and austerity measures aimed at reviving Argentina's struggling economy.

The ruling by a three-judge court came on a legal challenge brought by the main union group, the General Labor Confederation, which argued that the changes affected workers rights.

Milei's decree announced in December established several changes in labor rules, including increasing job probation from three to eight months, reducing severance compensation and allowing the possibility of dismissal for workers taking part of blockades during some protests.

Alejandro Sudera, one of the three judges, said the administration went beyond its authority to decree labor changes, which first needed to discussed and approved by Congress.

Mile's government said it would appeal the court's ruling.