The Argentine government has deregulated airport ramp-operation services for all airports across the country. The decree, which was published in the Official Gazette on Friday, also grants members of the security forces authorization to “temporarily and exceptionally” assist with these tasks when regular providers are unavailable.
The decision was made after a surprise strike on Wednesday by employees from Intercargo — the company which provides ramp-operation services for most airlines in Argentina. They carried out a work stoppage between 11 a.m. to 5 p.m protesting what they said was the “arbitrary” layoff of one of their coworkers. During the strike, workers refused to load or unload luggage from planes, and also to handle boarding stairs and ramps.
Presidential Spokesperson Manuel Adorni was the first to announce the news on Thursday.
“This is the end of the Intercargo company as we know it,” he said in his daily press conference standing alongside deregulation, security, and transport ministers Federico Sturznegger, Patricia Bullrich, and Franco Mogeta, respectively.
Intercargo is the only cargo company currently operating in Argentine airports. Some airlines such as Aerolíneas Argentinas, JetSmart, Flybondi and American Airlines have staff of their own doing handling operations, but not in every airport.
Adorni added that the decree’s goal was to “open the playing field to new companies and end Intercargo’s monopoly.” He also explained the new role security forces would have in airport operation management and once again attacked union activity, saying that these measures were intended so that “no union terrorist can take a passenger hostage ever again.”
The decree establishes that any company that wishes to bid for the ramp-service operation in any Argentina airport and clears all security protocols will be granted a 15-year license. It also instructs the National Civil Aviation Administration (ANAC, by its Spanish initials) to end any set prices concerning these operation in order to achieve “rate deregulation and free price settling.”
The ongoing battle between airline unions and the government
The Intercargo strike on Wednesday was the most recent scuffle in the ongoing battle between President Javier Milei’s administration and the different unions that operate across Argentina’s aviation industry. Security Minister Patricia Bullrich was the government’s face this time, saying that they would take “drastic measures” against Inercargo.
The security minister filed a criminal complaint against the company and the Aeronautical Staff Association (APA, by its Spanish initials) accusing them of “kidnapping” the passengers who were not able to leave the airplanes after their flights had already landed.
“They held them there for over two hours, affecting their health due to being locked in and without proper ventilation,” Bullrich wrote in an X post, saying this form of “extortion” would not go unpunished.
Later that same day, Economy Minister Luis Caputo announced that the government had decided to fire 15 Intercargo employees who had taken “passengers hostage” during the protest.
“In the Argentina we are building, we won’t allow extortion mechanisms,” he said in an X post.
The incident comes after months of tension between aviation unions that represent workers from public companies and the government. Milei made it clear since he became president that he intends to privatize Aerolíneas Argentinas. Despite several attempts this year, it remains state-owned, although Congress could debate a bill to privatize the airline before the year ends.
On Friday afternoon, aviation unions are set to meet with government officials and offer solutions on how to end the conflict between the two. Several Argentine outlets have said that the government has warned unions that if it was not satisfied with its proposals, it would initiate measures that could eventually lead to the closure of Aerolíneas Argentinas.
Unions, however, denied the media version that the government had given them an ultimatum.
“We don’t know anything about this, but we were asked to have a meeting after the Intercargo strike,” Cecilia Moccia, press representative for the Aeronautical Staff Association (APA, by its Spanish initials), told the Herald.