The Argentine government has introduced a labor reform bill designed to relax employment regulations and reduce litigation against employers, with the intention of facilitating the hiring process for companies. Peronism, along with left-wing parties and unions, has criticized the proposal as a direct assault on workers’ rights, subsequently organizing a protest march in reaction. The 79-page bill, signed on Thursday by President Javier Milei and five of his ministers, is designed to “reduce labor costs, promote job creation and formalization, encourage new investments, and simplify administrative burdens,” as stated in a government summary. The proposed legislation includes adjustments that would establish revised calculations for severance pay applicable to employees terminated without just cause, preserving the overarching principle of one month’s salary for each year of service but imposing limits and clarifying that employees who are laid off will forfeit the right to pursue legal action for additional compensation, while workers may receive compensation in foreign currency alongside pesos and potentially in the form of food or other goods, a proposal that has encountered significant resistance from unions.
The initiative seeks to establish a timesheet system that enables employers to request employees to extend their hours when necessary, with the provision for compensatory time off at a later date. The additional hours would not be classified or compensated as overtime; rather, they would be considered part of the employee’s standard working hours. The legislation would additionally diminish the influence of trade unions. Argentina’s ongoing inflation results in employed workers generally receiving multiple raises throughout the year to offset rising prices, with unions engaging in negotiations on a sector-wide basis, resulting in wage increases that are applicable to all workers regardless of their specific employer. The new bill outlines a series of modifications to this system, noting that currently collective bargaining agreements remain effective post-expiration until a new agreement is reached, whereas under the proposed bill agreements will cease to be valid upon reaching their expiry date.
Furthermore, existing legislation stipulates that a collective agreement supersedes lower-level agreements unless the latter provide superior conditions for the worker, but the legislation suggests that subordinate agreements will consistently hold priority over collective agreements, regardless of whether the terms are less advantageous for employees. In Argentina, workers are required to take their holidays in a single block, specifically between October 1 and April 30, with the statutory minimum for new employees standing at two weeks, though unions may negotiate for extended periods. The government’s bill suggests that employers and employees may negotiate dates beyond the specified period provided the company issues a minimum of 30 days’ notice, with employees still entitled to some leave during the summer at least once every three years, and the legislation would permit employees to divide their vacation time into segments of one week.
The duration of the probation period for domestic workers is set to increase from one month to six months, and in Argentina one in seven working women is employed as a domestic worker, with 98% of these workers being women according to the sources. The General Confederation of Labor, Argentina’s principal trade union federation, is set to organize a demonstration in Plaza de Mayo in opposition to the reform, while the left-wing coalition Frente de Izquierda y los Trabajadores has called on the CGT to initiate a campaign opposing the proposals. “Down with the slave labor reform: on the 18th at 6 p.m., everyone take to the streets,” they announced on X.