More than 1,300 employees were laid off: Milei confirms the permanent closure of Trenes Argentinos

Sources from the Casa Rosada explained that this will represent an annual saving of 41 million dollars for the State.

Argentina
Javier Milei Javier Milei saluda durante Atreju 2024, un evento organizado por el Partido Fratelli d'Italia de tendencia conservadora y nacionalista, en el Circo Massimo de Roma, el 14 de diciembre. (Roberto Monaldo/AP)

There are difficulties in Argentina due to the closure of a significant railway company in the country. This week, the government of Javier Milei formalized the end of operations of Trenes Argentinos Capital Humano (Decahf), which implies the permanent closure of said entity.

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Consequently, through a statement issued by the Ministry of Transportation, it was specified that "from now on, Trenes Capital Humano will not carry out hiring or invoicing, and in specifically economic terms, it will not have any money coming in or going out. Additionally, with the dissolution of the company, it will not have employees or carry out any activities."

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In response to this resolution, the government led by the party “La Libertad Avanza” justified the closure of the state-owned railway company, arguing that said entity “wasted resources, did not operate trains, and did not have functions that justified its existence.”

In the document issued by the Ministry of Transport, "mention was made of the company's request for 180 million dollars from the National Treasury during the term of former president Alberto Fernández."

This request was intended for purposes such as art installations in non-operational train stations or initiatives like 'Entretrenerte', where artists were hired and free celebrations were organized in the midst of the pandemic.

The layoffs would generate a savings of 41 million dollars.

Argentinian authorities explained that the closure of the entity represents an annual savings of 42 billion Argentine pesos for the government, which is equivalent to more than 41 million dollars. This is achieved through "the reduction of 1,388 employees and the elimination of 23 managerial positions that were earning an average of between 2 and 4 million pesos per month."

Decahf was part of the five railway companies subsidiaries of Trenes Argentinos and was established with the purpose of "designing, organizing, promoting, and carrying out activities of technical assistance, consultancy, training, complementation, training, specialization, training, and requalification and management of human resources, organizational strengthening, and documentary safeguarding in railway matters."

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