The Argentine Government decided to maintain the solidarity quotas system in its labor reform project, avoiding a direct conflict with unions. This move was seen as a relief by the General Confederation of Labor (CGT), although other contentious points of the reform, such as the redefinition of 'essential services', amendments to the ultra-activity of collective agreements, and restrictions on the right to strike, remain in place. Preserving the quotas ensures unions' short-term structural funding. However, the project also incorporates other changes that create tension in collective bargaining. This decision aims to facilitate the bill's progress through Congress amid tense negotiations. It signals pragmatism, prioritizing the political viability of the project over more radical reforms, at least in its union chapter. Internal disagreements within the government on this issue were significant, particularly between supporters of labor market modernization and moderate factions fearing unpredictable consequences. The withdrawal of the quota restriction was a setback for those who promoted it and a sign of support for the CGT. The norm retains clauses allowing unions to receive so-called 'compulsory deductions' from workers, regardless of their affiliation. This revenue is now the operational basis of the union budget, capable of mobilizing millions of pesos monthly. The abandoned restriction on 'union tolls' had been pushed by Federico Sturzenegger under the guise of modernizing the labor market and alleviating mandatory burdens on employees. However, the power struggle between the Casa Rosada, the unions, and internal cabinet forces could reactivate at any moment due to other conflicting points that the CGT still opposes.
Argentina's Government Preserves Solidarity Quotas in Labor Reform
Argentina's government backtracks on labor reform, preserving union solidarity fees to avoid a major conflict with unions, ensuring the bill's political viability in Congress.
