Argentina’s President Javier Milei announced steps Friday to privatize flag carrier Aerolineas Argentinas amid a standoff with unions over salaries and labor rights.
On Thursday, a labor court in Buenos Aires had suspended a decree by Milei to limit the right to strike in the aviation sector.
The court ruled the decree, which ordered that airlines maintain at least 50 percent of flights in the event of a work stoppage, was unconstitutional, according to the Airline Pilots’ Association.
The decision was the latest judicial setback for budget-slashing Milei, who came to power in December promising a dose of shock therapy for the ailing Argentine economy.
The self-declared “anarcho-capitalist leader” says state-owned Aerolineas Argentinas is costing the country too much but his efforts to cut costs have been met with fierce resistance from unions.
Pilots and crew have launched two one-day strikes for pay increases over the past month, affecting hundreds of flights.
They are demanding pay hikes of 30-35 percent to help them weather Argentina’s stubbornly high inflation rate, which reached 236.7 percent year-on-year in August.
After the court ruling, the presidency issued a statement Friday saying the government has decided to open the way for the carrier’s privatization.
The statement said Aerolineas Argentinas had not posted a profit since 2008.
It said the airline was being “harassed by a union caste whose only priority is to maintain privileges.”
In a country with a poverty levels exceeding 52 percent, “it is irresponsible and unacceptable that the state continues to finance the deficit and the privileges of a few with the taxes of those who do not make it to the end of the month,” said the presidency.
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