A court in Buenos Aires has upheld a preliminary injunction ordering the new operator of public transport in Paraná, Entre Ríos province, to temporarily absorb the workforce of the previous provider, Buses Paraná UTE (part of the ERSA Group). The ruling, issued by the National Chamber of Appeals, rejects challenges to the judge’s jurisdiction and claims of lacking legal standing, maintaining the requirement for the workforce transfer until a final judgment is reached.
The dispute centers around the transition of public transport services in Paraná to Transporte San José SA, which took over operations on . The Unión Tranviarios Automotor (UTA), the national union representing transport workers, sought the injunction to protect the jobs of the 237 employees previously employed by Buses Paraná.
The initial ruling came from Judge Claudio Fabián Loguarro of the National Labor Court No. 7 in Buenos Aires City on . Judge Loguarro determined that absorbing the existing workforce was necessary to prevent irreparable harm to the workers during the change of operators. The court found that the risk of job losses warranted the precautionary measure.
Transporte San José SA contested the ruling, arguing that the Buenos Aires court lacked jurisdiction over a matter occurring in Paraná. They also sought to have the injunction suspended, requesting that the immediate absorption of the 237 workers be halted pending a final decision. However, both Judge Loguarro and subsequently the Chamber of Appeals rejected these arguments.
Alejandro Becic, the lawyer representing UTA, stated that they are awaiting compliance with the judicial resolution from the company.
The court’s decision requires Transporte San José SA to “transitorily” absorb the personnel of ERSA from the start of their operations in Paraná, continuing until a definitive sentence is issued in the labor case. The order applies to all employees listed in administrative file No. 9337/25 of the Labor and Social Security Secretariat of Entre Ríos, which was submitted as evidence in the case.
Despite the court rulings, Transporte San José SA has not yet complied with the injunction. UTA has filed a further motion seeking financial penalties against the company for non-compliance, a request that remains unresolved. Workers who have not been absorbed have begun sending formal notices (telegramas) to the concessionaire.
The legal battle highlights the complexities of privatization and concession agreements in Argentina’s public transport sector. The case underscores the importance of protecting workers’ rights during transitions, particularly in sectors vital to daily life. The situation in Paraná reflects broader concerns about labor protections in the context of economic reforms and changing government policies.
The ruling comes amid a period of significant economic and political change in Argentina. President Javier Milei has proposed sweeping reforms aimed at liberalizing the economy and reducing the size of the state, including changes to labor laws that would make it easier to dismiss workers. An Argentine court recently overturned labor rules proposed by President Milei, a decision that signals potential resistance to his reform agenda.
The Paraná case, while specific to the local transport sector, could set a precedent for future transitions of public services and the protection of employment rights. The ongoing dispute demonstrates the potential for legal challenges to privatization efforts and the importance of ensuring a just transition for workers affected by such changes.
The conflict remains unresolved, with the future of the 237 workers still uncertain. The court’s decision to uphold the injunction, however, provides a degree of protection for their jobs while the legal process continues. The situation is being closely monitored by labor unions and transport workers across Argentina, who are concerned about the potential impact of broader economic reforms on employment security.
