The government of Javier Milei has officially announced it will appeal a judicial ruling that suspended 83 key articles of the Labor Modernization Law, known as Law 27.802. This legal setback occurred after the National Labor Court of First Instance No. 63 granted an injunction requested by the CGT labor union. The Ministry of Human Capital, led by Sandra Pettovello, confirmed that the administration will take the case to higher courts, including the Supreme Court if necessary, to defend what they describe as a vital tool for job creation and economic growth.

The suspended articles represent the core of the government’s plan to modernize Argentina’s labor market. These include changes to severance pay, the trial period for new employees, and the regulation of union contributions. While the CGT celebrated the ruling as a victory for workers’ rights and a defense against unconstitutional changes, the Milei administration argues that these judicial obstacles only serve to maintain a status quo that has kept millions of Argentines in informal employment for decades.

Government officials pointed out that the judicial decision creates institutional instability and discourages the very investments needed to pull the country out of its current crisis. They emphasized that the reform was designed to provide legal certainty for small and medium-sized businesses, which are currently hesitant to hire due to the high costs associated with outdated labor litigation. By fighting this ruling, the administration aims to demonstrate its unwavering commitment to breaking the power of traditional union leaders who, according to the government, prioritize their own political interests over the well-being of workers.

As the legal battle moves forward, the Milei administration remains confident that the reform will ultimately be upheld. The government maintains that the Labor Modernization Law is a necessary step to align Argentina with international standards and to foster a competitive environment where private enterprise can flourish. The appeal is expected to focus on the urgent need for structural changes to reverse years of economic decline caused by excessive state intervention and rigid labor laws.