Buenos Aires, Argentina. Argentina’s lower house of Congress approved a labor reform bill backed by President Javier Milei on Friday, a day after unions held a nationwide strike opposing the changes. The bill now returns to the Senate for a final vote.
Vote and legislative process
Lawmakers debated amendments until the early hours on Friday before passing the bill by 135-115 votes and sending it back to the Senate.
Government and investor focus
Investors have been closely watching the legislation to assess whether Milei can continue implementing his free-market agenda. The government says the bill, backed by the ruling party and its center-right allies, will spur investment and boost formal employment.
Ruling party lawmaker Lisandro Almiron said during the debate: “What good is an entire library of labor legislation if, at the end of the day, the system it establishes doesn’t serve to create jobs?”
Union opposition and protests
Unions say the proposed overhaul threatens long-standing worker protections, including the right to strike. The umbrella union CGT called a 24-hour stoppage on Thursday by transport workers, public sector staff and bank employees.
Argentina also saw grain exports affected on Wednesday and Thursday by a maritime workers’ protest.
Opposition Peronist lawmaker Sergio Palazzo said during the debate: “There is not a single letter or a single line (in the bill) that favors workers at all, and when there is any kind of benefit, it is directed toward the business sectors.”
Last-minute change and next steps
Among the last-minute changes was the removal of an article that reduced sickness-related benefits for employees.
The Senate is expected to pass the bill into law next week. Milei intends to have the legislation approved by the time Congress begins its ordinary sessions on March 1.
What do you think the Senate’s final vote will mean for workers and employers in Argentina?