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Javier Miley took office on December 10
In the early hours of Tuesday (26/12), the new Argentine president, Javier Miley, published a decree prohibiting the renewal of contracts for public employees who were appointed less than a year ago.
In practice, this will lead to the dismissal of thousands of public employees whose contracts expire in December.
Casa Rosada did not reveal the total number of workers and services affected, but Argentine newspapers Clarin and La Nation estimate that about 7,000 workers have been laid off, based on government sources.
In addition, another 45,000 government employees hired for longer terms were placed on 90-day “monitoring” — meaning they could be fired at the end of that period.
The measure had already been announced by Economy Minister Luis Caputo, part of a larger package of measures that became known as the “decree.”
According to the government, the aim of these measures (including layoffs) is to streamline the state apparatus and reduce the fiscal deficit.
According to the government, the changes will remove bureaucracy and obstacles that make life difficult for Argentines and will help boost currently neglected economic sectors and modernize the country.
The government did not reveal the salary ranges most affected, nor the amount it expects to save with the layoffs.
There are also no details about the review that will be conducted to evaluate whether the 45,000 employees will remain “under observation” for 90 days.
Argentina currently has about 338,000 employees in the federal administration, according to Indec (Argentine Statistical Institute, equivalent to IBGE).
Miley's government faced protests after publication of the 'decree'
The layoffs will affect employees of the executive branch, mostly public or state-owned companies, and independent government bodies – which include regulatory agencies, hospital administrations and research institutes.
Workers who meet the trans and disabled person quotas are not included in this measure.
Under the decree, layoffs will take place collectively, that is, without an individual analysis of the cases.
It is not clear how this measure will affect the work of affected public services, but the government says it is possible that officials for each region may request exceptions to maintain contracts that justify the request.
This is the second measure taken by the new government in relation to public servants – the first was to define face-to-face work in the entire public service.
The government says it intends to take measures affecting the “highest level” of civil servants, which will include freezing salaries and reducing them by up to 15%. There are no expectations of job cuts for this group, nor when a possible new decree will be published.
Protests and legal struggle
There's no guarantee that the changes Milei is promoting will become permanent.
An Argentine court proceeding is questioning the legality of the “decree,” and the Argentine Congress has already shown signs that it may block some of the measures.
The “decree” can be rejected by the two chambers that make up Congress. On Tuesday (26), presidential spokesman Manuel Adorni appealed to parliamentarians to approve the package of measures.
“Representatives and senators will have to choose between supporting what the people voted for, change, this Argentina we want for good people and without the weight of the state, or continuing to obstruct this change and obstruct what the majority of people want.” Adorni said in a press conference.
The changes were made by Miley through a legal instrument called the Decree of Necessity and Urgency (DNU).
According to the Constitution, the DNU can only be used in “exceptional circumstances” where Congress is unable to follow “ordinary procedures” for making laws.
Shortly after the signing of the National Unity Agreement last week, the “decree” faced numerous protests – including the famous “panillacos”, when Argentines make noise using frying pans to express their dissatisfaction.
Miley believes that state regulation during the last Kirchnerian governments led to economic stagnation and drove away investment.
According to the Argentine press, union leaders have already begun mobilizing for a general strike against layoffs and several economic measures.
However, they may face difficulties, because in the first week of taking office, Miley launched a protocol to “ensure public order” that sparked strong criticism.
Representatives of social movements and scholars express their concern about this measure, as they believe it may restrict the right to protest in the country.
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