The National Labour Court No. 30 ordered the immediate suspension of articles 131 and 133 of Law 27.802 and articles 5, 6, and 7 of Decree 407/2026, following a lawsuit from the Truckers' Union. The measure protects union benefits such as funeral insurance and health coverage.
A new judicial setback for Javier Milei's government. The National First Instance Labour Court No. 30, presided over by Judge Herman Mendel, ordered the immediate suspension of several articles of the Labour Modernisation Law (27.802) and its regulatory decree. The measure responds to a lawsuit filed by the National Federation of Truckers, led by Hugo Moyano.
The Suspended Articles and Their Impact on Unions
The ruling directly affects articles 131 and 133 of the law, as well as articles 5, 6, and 7 of Decree 407/2026. According to the judicial resolution, these norms violate collective autonomy, union freedom, and the ultra-activity of collective agreements. Furthermore, the judge considered that the decree exceeds the legal framework by imposing restrictions not foreseen by the legislator.
Specifically, the suspended points protect benefits such as funeral insurance, a monthly allowance for widows, the extension of health coverage, professional training programmes, social and cultural activities, and assistance aids. All of this was included in the collective labour agreement 40/89 of the truckers.
For workers in the sector, the decision represents immediate relief: the funds allocated to these benefits will not be affected by the reform. "The law alters the regulation on union contributions, which put essential benefits for members at risk," union sources stated.
The CGT's Fight Plan and the Judicial Domino Effect
This ruling adds to the one obtained last week by the Glass Industry Employees Union (SEIVARA), which achieved the suspension of articles 64 and 65 of its collective agreement. The General Confederation of Labour (CGT) is keeping its executive council in permanent session, aiming to launch a fight plan that includes partial strikes, assemblies, and mobilisations in transport, food, energy, and metalworking.
In parallel, unions are promoting a legal strategy to create a domino effect against the labour reform, through injunctions that prevent its application. A sector of the labour federation does not rule out marching to the Ministry of Health to demand the funds withheld for health coverage, which they claim "are facing a financial collapse."
Meanwhile, the Ministry of Labour insists that unions and business chambers update collective agreements, but judicial rulings complicate that scenario. "Employers fear that any modification could be annulled by a judicial resolution," sources from the sector explained.
Judge Mendel and His History of Halting Government Actions
Judge Herman Mendel, who signed the measure, submitted his resignation on May 22, effective from July 1. This magistrate had already halted in March the transfer of the National Labour Justice to the City of Buenos Aires, also included in the Labour Modernisation Law, following a lawsuit from the National Justice Employees Union (UEJN).
In his ruling, Mendel stated that "Decree 407/2026 does not merely regulate the law but alters its content, expanding the scope of the limit set by the legislator and imposing restrictions not contemplated in the legal text itself, constituting a clear regulatory excess." The decision is based on Article 99, paragraph 2 of the National Constitution.
For workers, the suspension provides a breather while the core issue is resolved. "As long as the process lasts, the benefits are safe", indicated sources from the Truckers' Union. The next step will be the appeal hearing, where the government will defend its reform.
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