In November 2023, the economist Javier Milei was elected as the new president of Argentina. He took office in December 2023. One of his first measures was to issue an emergency decree that included a chapter dealing with labor issues.

Emergency decrees are issued under the provisions of the National Constitution and a specific law for urgent matters that allows the president to exercise legislative powers in extraordinary situations. The emergency decree is considered valid unless a special legislative commission rejects it.

The changes made by the emergency decree cover individual employment regulation and collective matters involving unions and regulating the right to strike in certain activities.

The decree is being attacked by unions, which have obtained injunctions against the application of the labor chapter and a partial ruling from one labor court suspending the effects of the new act. That ruling is now pending confirmation by the National Supreme Court of Justice or the National Congress.

The initiative covers various different matters that can be summarized as follows.

Collective Bargaining and Union Activity

The initiative provides that:

• Unions can no longer impose mandatory solidarity dues from the employees covered by a collective bargaining agreement (CBA) without the explicit consent of the employee.
• Collective bargaining agreements must be renegotiated after their initial term, which means that there is no tacit extension of certain CBA provisions.
• The...

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