Labor lawyer Julián de Diego stated that the Labor Reform Law promoted by the National Government aims to "improve the situation of those who are in the shadows" and "foster investments." In an interview with Radio Rivadavia, he explained the five pillars of the official initiative and its impact on small and medium-sized enterprises (SMEs), workers, and unions, highlighting aspects that already exist. According to what was learned by Agencia Noticias Argentinas, the specialist emphasized that the backbone of this reform is the "labor whitewashing," since there are "eight million people in the shadows": "If you don't reverse that process, the rest of the reform collapses," he added. On the other hand, he stressed the need to generate confidence and predictability for companies through four key elements: the labor reform, stability with zero inflation, the recovery of confidence, and predictability for companies. Regarding the payment method, the lawyer clarified that the possibility of paying part of the salary "in kind" (products or merchandise) is something that "already exists" in current legislation, supported by articles 81 and 103 of the Labor Contract Law of 1975, and emphasized that they are not "new laws." The limit for payment in kind is "20% of the remuneration," so as not to deprive the worker of cash, which has greater availability. In this last point, he mentioned recent rulings by the Supreme Court of Justice that seek to stabilize the updating of credits, given the disproportion of some compensations for minor injuries. According to de Diego, the labor reform represents a "revolution" for SMEs in terms of labor costs and formalization. For example: a bakery with undeclared employees for ten years will be able to regularize its situation without having to pay accumulated debts. Workers who were in the shadows will be recognized with "seniority for pension purposes," with a period ranging from 24 to 40 months, ensuring they are not left unprotected. However, he assured that the reform "does not provide for" the return of "restaurant tickets" or "food basket tickets," as these have been declared unconstitutional. If this power is exercised, "union revenue will fall," as they would have to collect directly, "like a football club," without the security that the employer provided. To conclude, he directly linked this change to the call for a strike on December 18, and emphasized that this is a "profound change for unions."
Argentina Unveils New Labor Reform to Formalize Workers and Boost Investments
Argentina's National Government has introduced a Labor Reform Law to formalize eight million shadow workers and reduce litigation for SMEs. The reform includes a "pardon of the past" for informal companies and changes to union dues, drawing criticism from unions.