In a turbulent political scenario marked by intense debates, last Thursday, Câmara of Deputados of Argentina approved the labor reform project proposed by the government of Javier Milei. The approval occurred after an exhaustive plenary session, which lasted for hours and was accompanied by a massive general strike and demonstrations on the streets of Buenos Aires and other cities in the country. The measure, which now returns to Senado for reassessment of points modified by deputies, is seen by the president as a fundamental milestone to reverse decades of stagnation in labor relations, while union and opposition sectors classify it as a direct attack on workers’ rights.
The vote, which resulted in 135 votes in favor against 115 against, demonstrated the ability of the governing coalition to articulate support between different groups, including the PRO, the União Cívica Radical (UCR), the Movimento of Integração and Desenvolvimento (MID), in addition to provincial blocs. Este Parliamentary support was crucial to move forward with the initiative amidst strong resistance from broad sectors of society.
The protests that preceded and accompanied the vote reflected the polarization of Argentine society around the Milei proposals, with unions and civil organizations warning of possible setbacks in historic achievements of the working class and the government defending the urgency of flexibility to revive the country’s economy. Tension in the streets escalated into occasional clashes, requiring the intervention of security forces.
Close vote and the path back to the senate
The tight score in Câmara, 135 to 115, reflects the deep political division over the future of labor relations in Argentina. The approval does not represent the final point of the legislative process, as the text was changed by the deputies and, therefore, must be submitted again for analysis by the Argentine Senado, where the government bench also does not have an absolute majority, anticipating a new round of negotiations and tensions. One of the most controversial points that will need ratification is the elimination of the article that provided for the reduction of salaries during sick leave, a crucial change that softens part of the original proposal.
The Argentine Congresso process has been a constant challenge for the Milei administration, which has sought to consolidate its structural reforms since the beginning of its mandate. The agility in handling the proposal aims to allow the president to present the approval of the legislation as a significant victory before the inauguration of the ordinary sessions of the Congresso, an event traditionally marked by a presidential speech that outlines the government’s priorities and achievements.
The pillars of the new labor legislation
The labor reform of Javier Milei proposes a series of changes that aim to make relations between employers and employees more flexible, seeking to boost the Argentine labor market and attract investment. Entre The main changes include the permission to pay salaries in pesos or dollars, the reduction in severance pay by excluding thirteenth, vacation and bonuses from the calculation, and the flexibility of splitting vacations, which can be taken in minimum periods of seven days. Adicionalmente, the creation of a fund to finance compensation payments was approved, with 130 votes in favor, 117 against and three abstentions, a mechanism that generated intense debate among parliamentarians.
The proposal also includes the creation of a time bank, allowing the accumulation of overtime to compensate for reduced working hours, and the extension of the working day to up to 12 hours per day, as long as there is a subsequent 12-hour rest interval. Outro A relevant point is the determination that collective agreements will automatically lose validity on their expiration date, unlike previous legislation that kept them in force until a new term was negotiated. Essas changes represent a significant shift in the country’s labor regulations, moving away from more protectionist models.
Crucial points of the reform: flexibility and controversy
Among the most significant and debated changes, the reform establishes the dissolution of Justiça Nacional from Trabalho, transferring its powers to Justiça from Buenos Aires, and imposes limitations on the right to strike. The new legislation also redesigns the collective bargaining scheme, prioritizing agreements at the company or regional level to the detriment of national sectoral agreements, which could fragment union representation and workers’ negotiating strength.
One of the most contested aspects by the opposition and experts is the creation of Fundo from Assistência to Trabalho (FAL), designed to finance compensation with employer contributions. Críticos of the measure argue that this fund, which would raise at least 3 billion dollars, could divert resources from the pension system and, ultimately, would serve the Ministério of Economia to finance state expenses. Tais concerns highlight the fear that the reform, far from being just labor, will have broader fiscal and social implications.
Social impact and street response
The approval of the reform in the Câmara occurred in a context of strong social mobilization, with the Confederação Geral of the Trabalho (CGT) leading a general strike that was considered “extremely high” in terms of membership. The strike affected several sectors of the economy, from transport to public services, demonstrating the unions’ ability to organize and the rejection of a large part of the population to the measures proposed by the government.
Thousands of protesters gathered in front of Congresso in Buenos Aires, where clashes broke out between protesters and security forces. Garrafas and stones were thrown at the police cordon, who responded with water cannons and tear gas, resulting in almost a dozen arrests and high tension images that circulated through the media. The incidents, although isolated, illustrate the depth of popular dissatisfaction.
The feeling that the reform “worsens the situation of workers” was expressed by several protesters, such as metalworker Amílcar La Cueva, aged 55. The perception that flexibility is aimed more at the interests of employers than at improving conditions for the working class is a watershed in the Argentine public debate and continues to fuel opposition to the current government’s policies.
The political urgency of the government
Although the approved text still needs validation in Senado, the administration of Javier Milei is in a hurry to complete the legislative process. The objective is to present the approval of the law as a government “trophy” on March 1st, the date on which the president traditionally opens the ordinary sessions of the Congresso with a speech to the nation. Essa The search for a legislative victory aims to consolidate the image of a government capable of implementing its proposals and overcoming parliamentary resistance.
In a strategic move, the head of the ruling bloc in Senado, Patricia Bullrich, quickly called a plenary session of the Trabalho and The speed of the call and the intention to ratify the project on the following Friday, the 27th, demonstrate the top priority that labor reform has for the Palácio Presidencial.
Completing the reform is crucial to the Milei economic plan, which is based on deregulation and reduced state intervention to combat high inflation and stimulate growth. Acreditando that the flexibility of the labor market will attract investments and generate jobs, the government is betting that the final approval of the law could boost the country’s economic recovery, justifying the urgency and intensity of political negotiations.
The uncertain future of reform and legal challenges
With the return to Senado, labor reform faces a crucial and unpredictable phase. The government’s ability to negotiate and obtain sufficient support in the upper house will be decisive for the final approval of the project. The opposition, already organized and vocal, will likely intensify its efforts to block or significantly amend the proposal, promising a new chapter of intense debates and political articulations in the coming days.
In addition to the parliamentary challenge, the possibility of judicialization of the reform is a real concern for the government. Diversos opposition blocs, including União, Pátria and the left, warned that, as they consider the project unconstitutional and restrictive of rights, the text will be the target of challenges in Justiça. Este scenario adds a layer of uncertainty about the effective implementation of the new legislation, even if it passes both houses of Congresso.
Political reactions and national polarization
Throughout the discussion and voting process, emotions were high at Congresso. Diferentes opposition blocs denounced that the reform, far from modernizing working conditions, will restrict rights already acquired by workers in favor of employers. Essa polarized vision reflects a deep ideological battle over the role of Estado, the market and unions in Argentine society.
