Javier Milei goes to war with Argentina’s airline unions

Argentina’s airports have been repeatedly plunged into chaos as a clash escalates between libertarian President Javier Milei and workers at the country’s flag carrier, Aerolíneas Argentinas. In the first major confrontation between Milei’s free market reform drive and Argentina’s powerful unions, strikes are threatening travel around the 1mn-square-mile country, as the start of the nation’s peak holiday season looms in December. Labour unions representing employees at state-owned Aerolíneas Argentinas, which controls two-thirds of the domestic market, are demanding wage increases to compensate for the country’s triple-digit inflation. In recent months they have staged a series of strikes; they say the government has refused dialogue. “We have two extreme, completely ideologically opposed sides fighting, and trapped in between we have a company and thousands of passengers,” said one Argentine airline executive. “Anything could happen.” Stranded luggage and queues of frustrated passengers filled Buenos Aires’ city airport during the largest strike in mid-September, which cancelled all Aerolíneas flights for 24 hours. It affected 37,000 passengers and cost $2.5mn, according to the company. “It’s ridiculous . . . I’ve been waiting a year to see [Patagonian glacier] Perito Moreno and now I don’t think I’ll be able to,” a Spanish tourist complained to broadcaster TN. “I’m left with a bad image of how the country handles these things.” Milei, a fierce opponent of the labour unions, has hit back with a hardline response. His administration has fired several pilots who took part in strikes and has tried to declare air travel an essential service as a means of banning strikes altogether, though the courts prevented this from taking effect. The government has also begun talks with private companies about ceding some Aerolíneas routes. Milei on Tuesday issued a decree declaring the company “subject to privatisation” in order to speed up an effort to sell the group, which will require congressional approval.<br/>
Financial Times
https://www.ft.com/content/f1145ea5-e1db-4ce5-93cc-bb262ad7a32d
10/4/24