Post by : Bianca
Haleem
Buenos Aires, Argentina – Argentina’s Senate early Thursday approved a major labor reform bill, a key part of President Javier Milei’s economic agenda. The decision came after more than 13 hours of debate, while thousands of workers protested outside Congress.
The labor overhaul, seen as the most significant in decades, aims to modernize employment rules, reduce severance payouts, and make hiring and firing easier. Milei’s government argues that high taxes and protections have limited job growth, with nearly half of Argentines working informally.
Senators voted 42-30 in favor of the bill in principle around 1:30 a.m., giving Milei a symbolic win and showing his growing influence in Congress. The bill now moves to the lower house, where some Senate amendments could be revised.
Supporters say the reform will increase formal employment and help businesses grow. “With the modernization of the labor system, more people will have access to legal jobs,” said Milei’s La Libertad Avanza party.
However, labor unions and Peronist leaders strongly oppose the bill, arguing it strips workers of protections such as severance pay, overtime, and vacation rights. Axel Kicillof, governor of Buenos Aires province, warned the reform could harm workers instead of helping them.
Historically, attempts to reform Argentina’s labor laws have repeatedly failed, dating back to 1984. Milei hopes this time will be different, backed by a strong midterm mandate and support from allies like former U.S. President Donald Trump.
The bill limits the right to strike, extends trial periods for new employees, allows company-level collective bargaining, and narrows grounds for wrongful dismissal. Experts note the reform’s political significance may outweigh its immediate economic impact.
Outside Congress, protests turned violent as workers clashed with police using water cannons and rubber bullets. Demonstrators threw petrol bombs, stones, and bottles, resulting in at least 15 arrests.
Analysts say unions have lost much of their old influence. Negotiations behind closed doors softened some proposals, including rules on union membership dues, allowing unions to maintain key protections.
“This protest was more about showing strength, while real negotiations happened quietly,” said political analyst Ana Iparraguirre.
The passage of the labor reform marks a historic moment in Argentina’s politics, reflecting Milei’s push to reshape the country’s labor market and challenge decades of Peronist influence.
English
