Argentina’s Senate approved a comprehensive labor reform bill on Friday, backed by President Javier Milei’s administration. The legislation, which alters regulations on hiring, work hours, and union activities, passed following weeks of debate and public demonstrations.
The Senate voted 42 to 28 in favor of the bill, with two abstentions. According to government officials, the reforms are designed to attract investment and increase formal employment in the country. Labor unions and opposition groups have stated that the changes undermine protections for workers.
Key provisions in the approved legislation include relaxing hiring and firing regulations, extending the legal workday from eight to 12 hours under certain conditions, and placing new limits on strikes in essential services. The law also introduces modifications to the vacation system and allows for salaries to be paid in foreign currencies. Additionally, it contains tax incentives for businesses that hire new employees and establishes pathways for registering workers currently in the informal economy.
In the weeks leading up to the vote, multiple protests took place outside the National Congress building in Buenos Aires. While some earlier demonstrations resulted in clashes between police and protesters, the gathering on Friday concluded with minor disturbances, according to news agency reports.
Sergio Emiliozzi, a teacher attending the protest, told the AFP news agency that he believes the law will make it easier for employers to dismiss workers. Labor unions have also voiced specific objections to the new requirements for maintaining minimum operations during work stoppages in sectors deemed essential.
Supporters of the bill maintain that the changes are necessary to improve productivity and reduce the number of labor-related lawsuits. A recent survey indicated a near-even split in public opinion on the reforms, with 48.6 percent in favor and 45.2 percent against.
The passage of the labor bill occurs as President Milei’s administration continues to implement broader economic austerity measures. Since taking office, the government’s policies have contributed to a stabilization of the exchange rate and a reduction in the monthly inflation rate, which was reported at 2.9 percent in January. The International Monetary Fund has commented favorably on these economic developments. During the same period, reports have indicated significant economic hardship for many Argentinians.
