Argentina transportation paralyzed over strike

Transportation has been paralyzed across Argentina due to a strike by workers over measures by the government to block an income tax reform.

Flights, trains, buses and subways stopped services on Monday after President Mauricio Macri said his administration would resist an opposition bill that would substantially lower income tax.

Argentine Confederation of Transport Workers (CATT) staged a walkout until noon, grounding to a halt Buenos Aires's subway and commuter train system. Buses were also hit by a stoppage that began on 5:00 a.m. local time and lasted for two hours.

All flights operated by Aerolineas Argentinas were also canceled in the morning.

Labor Minister Jorge Triaca held a meeting with union leaders to discuss the tax row. There was little indication that the government would allow the cuts.

Macri took power a year ago on promises of cutting taxes, which hugely boosted his popularity among the middle class. However, he later changed his mind and said implementing the cuts would be fiscally irresponsible.

The president has also faced growing public criticism over his sweeping economic reforms, which he says are necessary to balance the budget.

A recent poll showed seven in 10 Argentines think Macri has failed to reverse the recession and high inflation. An equal number say they are worried about the economy.

An estimated 1.5 million workers were expected to enjoy the benefits of the income tax bill. Labor leaders said on Monday that they would plan more strike action until authorities agree to make changes. Along with demands for cuts, the unions have also called on the government to exclude holiday and overtime pay and travel expenses from taxable income.

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