"The so-called labour modernisation act would overhaul longstanding labour legislation shaped by Peronism, the movement that brought Gen Juan Peron to power in 1946. It is pro-business, pro-employment and pro-employee. It is anti-trade union and anti-labour lawyers, said Francisco Paoltroni, a senator from Milei's ruling party, La Libertad Avanza (LLA)."
"Juan Manuel Ottaviano, a labour lawyer and academic, described the bill as unconstitutional. It imposes severe limitations on individual rights in the workplace and weakens their protection through trade unions, he said."
"The legislation would allow companies to negotiate directly with employees, potentially overriding sector-wide collective agreements. In Argentina, unions typically represent workers nationwide within each industry, seeking to standardise wages and benefits across regions."
Argentina's government under President Javier Milei is advancing sweeping labour law reforms designed to reduce business costs and strengthen formal employment. The legislation would weaken trade unions, extend maximum working days from eight to 12 hours, reduce severance payments, and enable companies to negotiate directly with employees rather than through sector-wide collective agreements. The government claims these changes will reverse job losses totaling 290,600 positions since December 2023. However, critics argue the reforms are unconstitutional and would worsen employment quality while failing to increase formal jobs. Informal employment currently affects over 43% of workers, the highest rate since 2008. The bill has passed both chambers and returns to the senate following amendments, including removal of provisions reducing wages during sick leave.
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