Argentine President Javier Milei announced moves on Friday to privatize national airline Aerolineas Argentinas, amid a standoff with unions over salaries and labor rights.
On Thursday, a labor court in Buenos Aires suspended a decree by Milei to limit the right to strike in the aviation sector.
The court ruled that the decree, which required airlines to maintain at least 50 percent of flights in the event of a work stoppage, was unconstitutional, the Airline Pilots’ Association said.
The decision was the latest legal setback for the austerity-minded Milei, who came to power in December promising a dose of shock therapy for Argentina’s ailing economy.
The self-declared “anarcho-capitalist leader” says state-owned Aerolineas Argentinas is costing the country too much, but his efforts to cut costs are facing fierce resistance from unions.
Pilots and crew members have launched two one-day strikes over pay increases last month, affecting hundreds of flights.
They are demanding wage increases of 30 to 35 percent to help them weather Argentina’s stubbornly high inflation, which reached 236.7 percent annually in August.
Following the court ruling, the presidency issued a statement on Friday saying the government has decided to pave the way for the privatization of the airline.
The statement said Aerolineas Argentinas has not made a profit since 2008.
According to the company, the airline was “harassed by a union caste whose only priority is to maintain privileges.”
In a country with a poverty rate of more than 52 percent, it is “irresponsible and unacceptable that the state continues to finance the deficit and the privileges of the few with the taxes of those who do not reach the end of the month,” the spokesperson said. the presidency.
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