Latin Analysis: Union Action Strikes Again in Argentina
In his presidential campaign, Javier Milei promised to take a ‘chainsaw’ to the Argentine state, to improve the economy, reduce the size of the government, and set the country on the path to prosperity after years of spiraling inflation and impending economic ruin. However, this ruthless approach has come at a cost; one that may make Milei vulnerable and threaten his grip on power at the next election, or even earlier.
Argentina’s largest labor federation- the Confederación General del Trabajo (CGT)- carried out a thirty-six-hour general strike last week to protest new government measures, the third since Milei took power sixteen months ago in December 2023. The CGT declared that this widespread strike was “in rejection of the national government, its economic policies, falling wages and in support of the “rights of retirees””, with another protest organized for May 1 to commemorate International Workers’ Day.
This strike, organized by this umbrella union grouping involving the three main trade union federations, had widespread consequences across Argentina. All public transport unions – apart from the bus driver’s union- joined the strike. As did many bank and financial services workers, shop workers, civil servants, many hospital personnel, and public education workers. This is potentially unsurprising, given that many of these industries have been hit hardest by Milei’s policies.
In his attempts to bring down government spending and tackle hyperinflation, the President has “slashed subsidies for transport, fuel and energy, fired tens of thousands of public servants and closed government departments.” Although these measures have succeeded in bringing down catastrophic levels of inflation (which had reached over 100 per cent when Milei took power), they have unfortunately had a great impact upon the quality of life of many Argentines. By September 2024, the situation had reached critical levels, with over half the population living in poverty, driven by soaring prices, cuts to government subsidies, and rising unemployment. Milei’s attempts to reduce the size of the government has led to mass redundancies in the public sector; just before the general strike, Milei’s administration announced that it was cutting 15,000 state jobs, and many people were only notified of the termination the week before. This, combined with the devaluation of the peso and severe cuts to government spending for public services, has meant that rising inflation has left many people struggling to make ends meet.
Significant levels of discontent among these groups with strong links to trade unions, as well as a strong feeling of solidarity with retired people who have recently been protesting for improved pensions, culminated in the events of last Wednesday’s strike. Those involved did indeed bring Argentina to a halt over those thirty-six hours; most flights were cancelled or rescheduled due to aviation unions joining the strike. Aerolineas Argentinas, the state airline that Milei is keen to privatize- cancelled 258 flights, 17 of which were international. This impacted around 20,000 travelers and led to losses of around $3,000,000. In terms of public transport, all train and subway workers were on strike, alongside many taxi drivers. Despite supporting the action, the UTA bus driver’s union did not get involved due to their ongoing pay negotiations. Had the buses been stopped, Argentina’s public transport system would have been completely paralyzed. Public and private bank branches were not operating during the strike, while service at public offices was completely stopped due to various public employee unions joining the action, and classes at public schools and universities were cancelled. Hospitals remained operational, but with reduced staff.
The strike was carried out in conjunction with action being taken by retired people, who have become one of the worst affected groups by the austerity measures of Milei’s government. Retirees are living through a “humanitarian crisis”, with their monthly income from their state pensions categorizing them as living below the poverty line. In January 2025, it was reported that the government was spending “19% less on pensions than in January 2023”. This, combined with significant inflation rates, cuts to subsidies for utilities like energy and high prices, as well as cuts to social welfare programs like that which made some medication free, has spelt disaster for the elderly in Argentina. Many have been forced back into work to supplement their scarce pension payments, or in some cases, even stopped taking their medication to have enough money for food. There have been weekly pensioners strikes since Milei took office to pressure the government to reverse these decisions, which Milei’s administration has justified as necessary cost cutting. This was another facet of the discontent that cumulated in the general strike last week by public sector unions, who joined the retired people on their Wednesday march on Congress.
However, it appears that this mass walk-out did not force the government to take stock and evaluate the motivations behind this widespread discontent. In contrast, Milei spent his time posting on X (formerly Twitter), sharing a photo of a meeting with ministers where all involved posed with a thumbs up. Additionally, Milei hailed the success of the visit of the US Secretary of the Treasury, Scott Bessent, and used this to emphasize support for his economic strategy, both at home and abroad. The government brandished the strike as an “attack” against the Republic by the union elites who are working against those who actually want to work. This message was played out over speakers in the abandoned train stations during the strike. The presidential spokesperson, Manuel Adorni emphasized that this strike pursues purely political motivations, driven by those who had previously been controlled by the Peronist party and are inherently hostile to Milei and his radical change to the status quo.
Putting aside contrasting opinions on the driving factors that led to the general strike, the path ahead for Javier Milei is not clear. The general strike is over, for now. However, given that Argentina has witnessed three instances of civil action of this kind since Milei took power 16 months ago, it is likely to happen again. Additionally, the situation for working-class people has not changed as a result, with many retired people and workers living in destitution because of Milei’s ‘chainsaw’ tactics. The government has indeed just confirmed a $20 billion loan with the IMF, but given that the country already owes this international organization $44 billion, this will not come without terms. Given Milei’s track record thus far, it is not beyond the realms of possibility that further cuts will come to those who are already struggling to survive, which could in turn lead to the public’s unrest growing out of control.
