New Court Ruling Halts Labor Reform

In the context of an action for constitutional protection of fundamental rights (amparo) that the General Labor Confederation (CGT) filed against the Federal Government (JNT 3, Judge Moira Fullana, “CGT c/ PEN s/ ACCIÓN DE AMPARO” Expte. 19024/2025, June 2, 2025), the National Labor Court granted a preliminary injunction and ordered suspending the application of Decree 340/25. This Decree had classified multiple activities as essential and of critical importance—setting minimum service levels for them—and mandated creating a Guarantees Commission to determine new essential activities.

Citing concerns similar to those raised in relation to previous decrees, the Court held that this Decree infringes the right to strike and represents an overreach of legislative powers by the Executive Branch. The decision was issued at the first-instance level and the Federal Government may appeal it.

This ruling is particularly noteworthy as it highlights the starkly different perspectives various sectors have on the transformation of labor relations.