The CGT has failed again in court and the labor reform remains in effect

The General Confederation of Labor (CGT) suffered a new judicial setback in its offensive against the labor reform promoted by the Government of Javier Milei. Chamber IV of the Federal Administrative Litigation Court rejected the appeal filed by the labor union and fully upheld the Labor Modernization Law 27,802.

The union leadership sought to temporarily suspend 81 articles of the regulation, but the judges Rogelio Vicenti and Jorge Morán dismissed the request and confirmed the decision made in May by Judge Macarena Marra Giménez.

Thus, the government's labor reform will continue to be applied while the judiciary analyzes the claim of unconstitutionality presented by the CGT. The labor union will now have to wait for a final ruling on the substantive issue.

The judicial conflict began in March when the Kirchnerist judge Raúl Ojeda temporarily suspended a central part of the reform, including provisions related to seniority, outsourcing, dismissals, vacations, probation periods, and overtime banks.

However, the national government appealed the decision and managed to have the Labor Court overturn the suspension. Subsequently, the case moved to the Administrative Litigation jurisdiction, where Marra Giménez rejected the precautionary measure, considering that the CGT's claim was too broad and complex to be resolved through a provisional measure.

Chamber IV has now supported that criterion. According to the judges, the CGT "does not seek to maintain the status quo," but rather "requests a preview" of the final ruling. Furthermore, they determined that the union did not manage to demonstrate a harm of sufficient magnitude to justify altering the normal course of the judicial process.

Another of the central arguments of the ruling was related to the alleged urgency invoked by the labor union. The Chamber stated that the proximity of a final ruling reduces the so-called "danger in delay" and, therefore, there are not sufficient grounds to freeze the application of the law.

With the new judicial rejection, the CGT fails again in its attempt to paralyze one of the main reforms of Milei's Government. Judge Marra Giménez must now decide whether the Labor Modernization Law is constitutional, while the regulation remains in effect.