Record litigation: What is Milei's plan to stop the lawsuit industry

President Javier Milei has once again set his sights on the labor courts, by retweeting a message that promises "chainsaw for the lawsuit industry and the vultures."

The phrase, more than symbolic,  anticipates a government offensive against what it considers a judicial system aligned with unionism, which hinders investment and seriously affects small and medium-sized enterprises.

The government's concern: adverse rulings and record litigation

According to official sources, the Executive is watching with concern a wave of labor rulings that challenge key government decrees: DNU 70/2023 (labor reform), DNU 340 (regulation of the right to strike), and DNU 430 (elimination of State Workers' Day). In all cases, judges ruled in favor of union claims.

In addition, a report from the Unión de Aseguradoras de Riesgos del Trabajo (UART) revealed that between June 2024 and May 2025, more than 126,000 labor lawsuits were filed, with a cost exceeding 2 trillion pesos (4.41 billion pounds), equivalent to 6.9 million minimum wages. For 2025, a record 130,000 new lawsuits is expected.

Criticism of judges and political strategy

Casa Rosada accuses labor judges of being partial, unaccountable, and serving union interests. Judge Moira Fullana is currently the main target of criticism: she declared articles of DNU 340 unconstitutional and ruled against the Executive in other union cases.

Presidential spokesperson Manuel Adorni described her as a "militant judge" and accused the "union mafia" of being protected by the "judicial caste."

According to a government official quoted by Infobae, initiating political trials (jury) in the Council of the Magistracy and publicly exposing judges with allegedly inexplicable assets are part of the official strategy to "wear down the courts."

Institutional changes: transfer of courts to CABA

Meanwhile, the government plans to accelerate the transfer of labor courts to the jurisdiction of the City of Buenos Aires, so that the Superior Court of Justice (TSJ) of Buenos Aires can act as the higher instance, as enabled by a Supreme Court ruling in December 2024.

Since then, the TSJ has already received 180 cases referred from the national courts, of which 140 correspond to the labor field.  This would allow the administration to bypass the national labor courts, which are considered hostile.

Reforms to the occupational risk system

The UART report details that, despite an 81% decrease in occupational mortality and a 55% drop in accident rates, litigation has increased. For insurers, this is due to inflated medical expert reports, disproportionate judicial interest, and a judicial system that turns lawsuits into business.

For this reason, the Executive is considering reforms to the occupational risk system to sanction lawyers who file unfounded lawsuits and discourage the speculative use of labor courts.