In depth
What was resolved?
The CNAT resolved that the title related to labor reforms (Title IV — sections 53 to 97) of DNU No. 70/2023 is invalid in constitutional terms, since, according to the ruling, it is contrary to Section 99, paragraph 3 of the CN. Therefore, the ruling granted the protective action filed by the CGT, which implies that all labor reforms provided by the DNU are inapplicable as far as the CGT's representative scope is concerned (i.e., including all personnel under the scope of a collective bargaining agreement of any union association that adheres to the CGT).
In which judicial procedure was the ruling issued?
The ruling was issued in the framework of the protective action filed by the CGT. In this proceeding, first, the CNAT suspended the application of Title IV (as explained in our news alert dated 19 January 2024).
Subsequently, on 24 January 2024, a national court of first instance established the unconstitutionality of some sections of the DNU (related to union rights — sections 73, 79, 86, 87, 88 and 97 of the DNU) without mentioning the other sections that have an impact on individual relations.
In view of the first instance court's ruling, both parties involved (the CGT and the national government) appealed. Consequently, the CNAT's ruling (in addition to declaring the inapplicability of the DNU, as explained in this alert) left without effect the court of first instance's decision regarding the unconstitutionality of some sections of the DNU.
Are there any other judicial instances left?
In view of the CGT's partial victory, the national government still has the option to recover the applicability of the DNU's labor reform by filing a federal extraordinary appeal. Therefore, the CSJN will eventually have to resolve this claim.
Similar decisions are expected in other judicial cases, such as, among others, those filed by the Argentine Workers' Central Union and/or the Banking Association.
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