The owner stated that the presiding judge forced him to pay compensation exceeding 200 million pesos (440,925 pounds)
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The restaurant entrepreneur Alberto Chinkies, owner of the historic Piegari restaurant, revealed that a court ruling against him has put his establishment on the verge of bankruptcy and put at risk the jobs of more than 100 employees. The ruling, issued in the first instance, requires him to pay compensation exceeding 200 million pesos (440,925 pounds) to a former employee with more than two decades of service.
During an interview with Radio Mitre, Chinkies stated that the presiding judge ruled in favor of the worker for an amount that “doesn't correspond to reality” and is “impossible to pay” for a medium-sized restaurant business. The conflict arose after the dismissal of a waiter who, according to the employer, stopped showing up for work during the pandemic after refusing to resume essential duties.
“I believed I had arguments and I believe I have arguments either not to pay or to pay a reasonable amount. In conclusion, the first instance judge ruled 100% in favor of the employee,” said the entrepreneur. He also stated that the compensation awarded even exceeds the amount claimed in the lawsuit.
Un restaurante.
The ruling was accompanied by a preventive seizure of all the restaurant's bank accounts for 160 million pesos (352,740 pounds), a measure that worsened the business's financial situation. “They seized all my accounts in all the banks. Explain to me now how I'm supposed to manage. I have to pay the staff, now I have salaries, I have bonuses, I have suppliers. How am I supposed to do it?” he said.
According to Chinkies, the salary calculation accepted by the judge suggests that “this waiter should be earning 8 million pesos (17,637 pounds) today,” a figure he described as “inapplicable” in the restaurant sector. He also questioned the adjustment indexes used in the ruling: “The indexes are absolutely abusive,” he stated.
The entrepreneur explained that the dismissal was carried out “with cause,” arguing abandonment of duties: “He never replied to a message, never did anything, and one day, since he was no longer coming and a lot of time had passed, we dismissed him with cause. For abandonment of duty.”
Faced with this scenario, the owner of Piegari highlighted the fragility that small and medium-sized enterprises face in the context of labor lawsuits with high economic impact. “What are we supposed to do? What needs to be done? Am I supposed to close? I've been working for more than 30 years, we have a prestigious restaurant, we have more than 100 people,” he questioned.
Un restaurante.
The restaurant's defense appealed the ruling to the Chamber, where the case is still awaiting resolution. Meanwhile, the seizure remains in effect and the continuity of the establishment remains in doubt.
The need for labor reform
The episode described by Chinkies is part of a climate of growing tension between small businesses, the labor judicial system, and the current regulatory framework. Within this context, the government of Javier Milei is working on a structural labor reform aimed at preventing extreme situations like the one Piegari is experiencing.
Rulings of this kind, where compensation and adjustments far exceed the economic capacity of a small or medium-sized business, act as a disincentive for formal hiring, affect economic activity, and put formal jobs at risk.
The Piegari case has become an example that demonstrates the urgency of updating a system that today punishes those who produce and create jobs. The legislative debate on modernization is already being criticized by Kirchnerist and left-wing unions, but episodes like this increasingly reinforce that reform is absolutely necessary.
