Protesters shouting harangues are guarded by riot police after a demonstration called by Argentina's Labor Union (CGT) against President Javier Milei’s emergency decree in Buenos Aires on Dec 27, 2023. Argentina's President Javier Milei has unleashed a mega-decree to change or scrap 366 economic rules in a country accustomed to heavy government intervention in the market. (PHOTO / AFP)

BUENOS AIRES - An Argentine court Wednesday suspended the labor clause included in President Javier Milei's Decree of Necessity and Urgency, an executive order he signed last month to make changes to laws regarding layoffs and the right to strike, among others.

Judges from the National Chamber of Labor Appeals issued the ruling as a "precautionary measure" in response to a request from the General Confederation of Labor, the country's main labor union.

According to the court's ruling, adopted by a 2-1 vote, several labor norms Milei intends to modify through executive order, "without giving intervention to legislators, are repressive or sanctioning in nature", and it was not clear how the order would benefit Milei's objective of "creating real jobs".

The ruling temporarily blocks enforcement of the labor regulations in President Javier Milei's so-called "mega-decree", which includes more than 300 measures aimed at deregulating the South American country's economy

The ruling temporarily blocks enforcement of the labor regulations in Milei's so-called "mega-decree", which includes more than 300 measures aimed at deregulating the South American country's economy.

Labor elements of the decree include the repeal and modification of laws related to employment contracts, terms for dismissal, severance payments, and more.

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The powerful General Labor Confederation union has staunchly opposed those measures, planning a nationwide strike set to kick off at the end of the month.

Milei announced the decree in a message broadcast over the national radio and television network, saying the reforms would "unblock an oppressive legal and institutional framework".

The decree's 366 articles aim to lay "the foundations for the reconstruction of the Argentine economy", according to its title. 

The Milei administration said in a statement it plans to appeal the suspension. The decree can be repealed in Congress if a motion to do so passes the lower house and the Senate. Milei's party does not hold a majority in either house.

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Congress is currently in a special session called by Milei through the end of the month in an attempt to pass a sweeping omnibus bill, which critics have dubbed unconstitutional.

With Reuters inputs