Argentina’s President Javier Milei announced steps on Friday to keep flag carrier Aerolineas Argentinas private amid disputes with unions over wages and workers’ rights.
On Thursday, the labor court in Buenos Aires suspended Milei’s announcement to reduce the right to strike in the aviation sector.
The court ruled that the law, which required airlines to keep at least 50 percent of their planes in the event of a shutdown, was unconstitutional, according to the Airline Pilots’ Association.
The decision was the latest legislative reversal of budget cuts by Milei, who took office in December promising a dose of shock therapy for Argentina’s ailing economy.
The self-proclaimed “anarcho-capitalist leader” says state-owned airline Aerolineas Argentinas is costing the country too much but his cost-cutting efforts have met stiff opposition from unions.
Pilots and crews began two one-day strikes over pay increases last month, affecting hundreds of airlines.
They are seeking a 30-35 percent wage increase to help counter Argentina’s high inflation rate, which reached 236.7 percent year-on-year in August.
After the court’s decision, the President’s Office issued a statement on Friday saying that the government has decided to pave the way for the company to become independent.
Aerolineas Argentinas has not posted a profit since 2008, the statement said.
It said the airline “is being harassed by the only union organization that is more important than maintaining rights.”
In a country with poverty rates of more than 52 percent, “it is irresponsible and unacceptable that the state continues to finance the deficit and the rights of the few with the tax of those who do not make it at the end of the month,” it said. presidency.
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