Argentine President Javier Millay on Friday announced measures to privatize flag carrier Aerolineas Argentinas amid a standoff with unions over wages and labor rights.
On Thursday, a labor court in Buenos Aires suspended a Millay decree limiting the right to strike in the aviation sector.
The court ruled that the ordinance, which ordered airlines to maintain at least 50 percent of flights in the event of a work stoppage, was unconstitutional, according to the Airline Pilots Association.
The ruling was the latest judicial setback for budget-cutting Millay, who came to power in December promising a dose of shock therapy for Argentina’s struggling economy.
The self-proclaimed “anarcho-capitalist leader” says state-owned Aerolineas Argentinas is costing the country too much, but his efforts to cut costs have been met with stiff resistance from unions.
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Pilots and crew launched two one-day strikes over pay rises last month, affecting hundreds of flights.
They are demanding wage increases of 30-35 percent to help them tackle Argentina’s persistently high inflation, which hit 236.7 percent year-on-year in August.
Following the court’s decision, the presidency issued a statement on Friday saying the government had decided to pave the way for the airline’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 preserve privileges”.
In a country with poverty levels exceeding 52%, “it is irresponsible and unacceptable for the state to continue to fund the deficit and the privileges of a few with the taxes of those who do not make it to the end of the month,” he said. the presidency.
Source: AFP