Argentina’s Milei Sends Labor Reform Bill to Congress

President Javier Milei has presented a labor reform bill to Congress, describing it as an effort to reduce excessive bureaucracy and address what the government sees as a rigid system that has limited the creation of formal employment.

The newly elected Congress — where Milei’s party increased its representation in the October midterm elections — has begun a special legislative session during which the president aims to advance a series of economic and structural reforms.

The proposed labor legislation seeks to give employers greater flexibility regarding working hours and vacation arrangements, and to revise the severance pay system to lower costs for businesses. It also includes financial incentives for companies to hire registered workers and permits salaries to be paid in foreign currencies.

Labor unions have sharply criticised the proposal. The bill requires unions to obtain employer approval to hold workplace assemblies and classifies the occupation or blockage of a worksite as a “very serious” violation. The General Confederation of Labor, the country’s largest labor federation, has scheduled a demonstration in central Buenos Aires next Thursday to protest the initiative.

The proposal has gained backing from the Argentine Industrial Union. Its president, Martín Rappallini, said the manufacturing sector has faced increasing pressure from lower-priced imports and expressed hope that the reforms could gradually help reverse job losses, noting that the country needs to expand formal employment.