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Argentina’s President Javier Milei announced steps Friday to privatize flag carrier Aerolineas Argentinas amid a standoff with unions over salaries and labor rights.<\/p>\n
On Thursday, a labor court in Buenos Aires had suspended a decree by Milei to limit the right to strike in the aviation sector.<\/p>\n
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.<\/p>\n
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.<\/p>\n
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.<\/p>\n
Pilots and crew have launched two one-day strikes for pay increases over the past month, affecting hundreds of flights.<\/p>\n
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.<\/p>\n
After the court ruling, the presidency issued a statement Friday saying the government has decided to open the way for the carrier’s privatization.<\/p>\n
The statement said Aerolineas Argentinas had not posted a profit since 2008.<\/p>\n
It said the airline was being “harassed by a union caste whose only priority is to maintain privileges.”<\/p>\n
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.<\/p>\n
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