Argentina's Labour Reform: The Fight Is Not Over Yet

President Javier Milei's draconian labour reform bill has received preliminary Senate approval, but the fight is far from over. The bill now moves to the Chamber of Deputies, where workers and unions have until late February - when regular sessions resume - to mobilize and potentially block this attack on hard-won labour rights that would set a dangerous precedent.

On 12 February, the Senate granted media sanción in a 42–30 vote after a marathon 13-hour session. Thousands of workers mobilized by unions paralyzed parts of Buenos Aires in massive protests outside Congress - described as "unprecedented" and "vehement." A general strike involving broad sectors led to clashes with police, up to 71 arrests, and multiple injuries. Critics condemn the bill's regressive provisions: 12-hour workdays, reduced severance, strike limits, and shifts in bargaining power.

Under Argentina's bicameral legislative process, the Senate's approval is only the first step. The bill now moves to the Chamber of Deputies, where the government is pushing aggressively for a quick vote before the end of February or by March 1 - when regular congressional sessions begin.

Sources indicate the ruling coalition believes it has the necessary votes, around 129 or more. However, fierce opposition could complicate the process. Union pressure, ongoing protests, and possible amendments could still derail the bill.

If the Chamber of Deputies approves this sweeping legislative package of over 200 articles, it would fundamentally reshape Argentina's labour landscape. Key provisions include:

  • Extension of the working day to up to 12 hours

  • Elimination of paid overtime, replaced by a "time bank" system where employers unilaterally decide when - or if - accumulated hours can be taken as time off or reduced shifts

  • Introduction of "dynamic wages" based on productivity, allowing salaries to fluctuate from month to month

  • Deduction of days not worked during sick leave, ending payment for medical absences

  • Fragmentation of the traditional 30-day annual vacation, with employers deciding when workers take their leave

  • Complete elimination of severance pay, encouraging mass dismissals and "fire-and-rehire" practices under worse conditions

  • Severe restrictions on the right to strike

  • Sweeping empowerment of employers, destroying the principle of equal bargaining power and leaving workers completely submissive to management

If this bill becomes law, it would set a dangerous precedent that could easily be replicated worldwide by extreme-right governments backed by billionaires and corporations - rolling back decades of labour protections under the guise of "modernization" and economic growth.

Fernanda Boriotti, President of PSI's affiliate FESPROSA, added: "The labour reform tailored to the great capitalists of Argentina and the demands of the Trump government is a frontal attack on labour rights in both the public and private sectors. Public workers will see our right to strike affected, our right to assembly curtailed, and our ability to appeal to labour courts in the face of employer injustices diminished."

Federico Dávila, PSI Vice President, stated: "The self-proclaimed 'labour reform' is part of a set of measures that, far from generating more work and production, actually undermines them. These measures make employment precarious, eliminate labour and union rights, and weaken union organizations and their health systems - all with the clear purpose of maximizing the profits of large companies that never reinvest in work and production."

Don't miss our updates

Receive the latest updates in your inbox

Subscribe