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Argentina’s Macri Strikes Deal to Suspend Layoffs

Argentine President Mauricio Macri (R) followed by Finance Minister Alfonso Prat-Gay (L) and Chief Cabinet Marcos Pena walks toward a news conference at the Olivos presidential residence in Buenos Aires, Argentina, May, 6, 2016. REUTERS/Enrique Marcarian

BUENOS AIRES, Argentina — Argentine President Mauricio Macri has struck a deal with local businessmen to suspend layoffs for 90 days.

Macri’s announcement of the deal Monday comes as job cuts and high inflation rate are worrying many Argentines.

Tens of thousands of state and private employees have been fired since he came to power in December promising to cut bloated government spending and tame high inflation.

Argentina’s President Mauricio Macri (C) speaks to Argentine businessmen during a ceremony at the Casa Rosada Presidential Palace in Buenos Aires, Argentina, May 9, 2016. Photo: Argentine Presidency via Reuters

Macri has said measures are needed to jump start Argentina’s stagnant economy and end economic distortions that have led to years of high inflation.

His government says the layoffs are justified because many employees hired during previous administrations never showed up for work. Unions representing workers say they are being indiscriminately fired.

Argentina’s opposition has proposed a bill that would ban laying off workers “without just cause.”