Politics Economy Local 2026-02-01T16:34:35+00:00

Argentina's Labor Secretary Defends Reform Aimed at Job Creation

Julio Cordero, Argentina's Secretary of Labor, presented the key points of the new labor reform. He stated that it aims to create genuine jobs, strengthen workers' rights, and reduce the burden on small and medium-sized businesses through the creation of a Labor Assistance Fund.


Argentina's Labor Secretary Defends Reform Aimed at Job Creation

The Secretary of Labor of the Nation, Julio Cordero, defended the labor reform promoted by the national government by stating that the main benefit for citizens will be the creation of genuine jobs within a framework of economic stability and growth.

The official explained that the project “seeks to order various elements of the system that have been distorted for years” and emphasized that the instruction from the Minister of Human Capital, Sandra Pettovello, was “to strengthen the essential rights of workers without generating detriment to their current conditions.”

In an interview with Splendid AM 990, Cordero stressed that the initiative “fosters legal certainty and reduces the indirect costs that today act as an impediment for companies to hire personnel,” clarifying that “it is not intended to affect the real salary but to eliminate the risks that generate distrust in the employer sector.”

Regarding criticisms linking the reform to a supposed loss of benefits, the secretary clarified that “vacations remain exactly the same and that the modification only allows the worker and the employer to agree on its fragmentation without the State having to intervene with sanctions.”

According to his words, “it seeks to give the employee the power to decide about his own life and manage his time according to his needs, allowing even those who wish to work more hours to do so to improve their income within the limits of health and safety.”

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Likewise, according to what the Argentine News Agency was able to learn, he highlighted that the project “regulates autonomous work, a modality highly sought after by young people, to prevent these contracts from being judicially interpreted as an employment relationship and thus promote the formalization of new labor ties.”

One of the central axes of the proposal is the creation of the Labor Assistance Fund, a tool designed under fiscal balance criteria and especially intended so that small and medium-sized companies can handle layoffs.

Cordero detailed that this fund “will be financed with a 3% deduction from employer contributions and will allow SMEs to have resources to pay severance pay or mutual agreements without de-capitalizing.”

The official assured that this does not reduce severance pay for dismissal, but rather orders it to remove litigiousness and prevent conflicts from being resolved in prolonged trials.

Finally, the Secretary of Labor stated that he maintains a fluid dialogue with the unions and trusts the debate that is taking place in the Senate, pointing out that “the country needs to adapt to the new realities of the world of work to get out of the stagnation in salaried employment.”