By a vote of 135 to 115, the Argentine House of Representatives adopted the ‘so-called’ labor reform spearheaded by ultraliberal President Javier Milei. The result, which was welcomed with great enthusiasm by the government, came after midnight, after more than ten hours of debate in the House of Representatives.
The law caused outrage in the country. While MPs were voting, thousands of people gathered in front of the Congress building to protest. More than 70 people were injured and at least 10 people were detained during the demonstrations that were dispersed by police intervention.
There is only one step left for the Milei government to finalize the reform: the re-approval of the text by the Senate with the latest changes. This stage is expected to be a formality; But unions are threatening to continue the actions following a 24-hour national strike that paralyzed the country yesterday.
President Milei followed the vote from Washington, where he was to attend the opening of the “Peace Board” established by Trump.
“Not reform, but insecurity”
While MPs were discussing the new regulation, protesters gathered in front of Congress included those carrying banners reading “This is not reform, not progress: it is insecurity” and those wearing Milei’s cartoon mask.
Workers from different sectors such as teachers, nurses, doctors, truck drivers and metal workers attended the demonstration. Critics of the reform say the regulation represents a dangerous step back in workers’ rights.
With the new regulation:
The working day increases to 12 hours.
Layoffs are becoming easier and less costly for employers.
Overtime pay is optional for companies.
The government argues that the reform is necessary to modernize “obsolete” legislation and will reduce unregistered employment and the informal economy. The informal economy is currently at a record level of 43 percent.
“We won our rights through struggle”
55-year-old teacher Micaela said:
“I have been working for more than 30 years and have always fought for workers’ rights. I participated in strikes and protests. We earned our rights through years of struggle. I cannot believe that this government wants to take almost all of them away from us.”
60-year-old Juan Pablo wrote “No to labor reform” in red letters on a black umbrella:
“I lost my job last year and it is impossible to be rehired at my age. I had to become an Uber driver. But I have no rights in that company, I do not have a fixed salary or a certain number of hours. How much I earn depends on the time I work. This is a completely precarious situation, and with this reform, the reality that many Argentine workers will experience will be similar to mine.”
Strike across the country
Unions declared a national strike on the day of the vote, bringing much of the country, especially the capital Buenos Aires, to a virtual standstill.
Metro and train stations remained closed until midnight. 400 flights were canceled across the country.
Bus stops remained empty. Public offices and banks were closed. Garbage collection and postal services stopped. Only vital operations and emergency services were provided in public hospitals in the capital.
This action, the fourth strike organized by unions during the Milei period, reportedly halted 90 percent of business activities on Thursday and caused a loss of approximately $489 million (20 percent of the country’s daily production), according to CGT, one of the country’s largest unions.
The government is disturbed by the strike. Cabinet Chief Manuel Adorni criticized the strike and said, “The only result is to make life difficult for workers who want to go to work but cannot go because there is no transportation.”
From Plaza de Mayo to the Senate
The protests started early in the morning. Starting at 10 o’clock, the first groups began to hang anti-reform banners in front of the presidential palace, Casa Rosada.
At 11 o’clock, representatives of the main unions held a press conference in the historic center of the Mothers of Plaza de Mayo, who have been seeking justice for their missing children since the time of the military dictatorship. Mothers have always been on the side of the workers and this time they were in the square.
The unionists’ message was clear:
“Argentine workers’ opposition to this reform is complete. If approved, we are ready to declare an indefinite strike at the national level.”
Fate factory and closed businesses
The vote took place the day after an event that had a huge impact in Argentina: Fate, the historical tire factory founded in 1940 and which had survived the country’s economic crises, laid off more than 900 workers with a notice posted on the door.
Management stated that the decision was due to “changes in market conditions.” This statement was interpreted as a reference to Milei’s free market policies. Many national businesses now have difficulty competing because foreign companies can import cheaper.
According to the research center Fundar, approximately 22 thousand factories have closed since Milei took office. While 4.3 percent of the total companies in the country were closed, 892 businesses stopped their operations in the last month alone. 290 thousand people lost their jobs in two years.
Despite this, Milei’s policies also receive international support. IMF Spokesperson Julie Kozack announced at the press conference she held during the vote in Argentina that she supports the reform and the government’s economic policies.
