Economy Politics Local 2025-12-14T16:44:19+00:00

Argentinian Wholesalers Back Milei's Labor Reform with Proposed Changes

The Argentine Chamber of Wholesalers and Supermarkets (CADAM) backed the government's labor reform initiative but called for a deeper debate and specific amendments to prevent negative consequences for businesses.


Argentinian Wholesalers Back Milei's Labor Reform with Proposed Changes

Buenos Aires, December 14 (NA) – The Argentine Chamber of Wholesalers and Supermarkets (CADAM) supported the labor reform presented by the government of Javier Milei but proposed modifications to the official project. Wholesalers expressed in a communiqué, accessed by the Argentine News Agency, their support for the government's initiative to modernize labor relations by stating that “we believe that updating regulations can help organize the system, provide more predictability, and reduce conflicts”. However, they emphasized that “a reform of this magnitude deserves a deep debate and a clear, modern legal framework”, proposing “to move towards new, updated labor legislation, designed for today's and future reality”. In this context, they referred to labor lawsuits as a central problem by pointing out that “in practice, many companies, especially SMEs, face court rulings that become impossible to pay” and affirmed that “this not only puts companies at risk, but also ends up putting jobs at risk”. On this point, they stated that “we are particularly concerned about the attempt to make official the method of updating labor judgments using a combination of CPI (INDEC) plus an interest rate”. In this regard, they proposed that “we do not agree with making the indexing by an index plus interest rates a rule, because this disproportionately multiplies the judgments and can lead to the closure of companies”. Likewise, they assured that “this scheme contravenes current norms that prohibit indexing sums of money (Law 23.928 and amendments)”. The modifications proposed by the wholesalers: 1) Return to a system of updating with bank rates: they propose applying a system based on bank rates, averaging active and passive rates, as was historically used. In this sense, they seek that “if a worker decides to join, they must pay directly to the union entity, which must be in charge of its control and collection”. Measures to curb the “lawsuit industry” At the same time, from CADAM they support measures to reduce unjustified litigation by proposing that “if it is demonstrated that there was an exaggerated or unfounded claim (“plus petición inexcusable”), we request that the costs be assumed jointly by the claimant and their lawyer, so that there is real responsibility for excessive lawsuits”. They also support modifying the labor procedure so that the progress of the lawsuit depends on the impulse of the parties and the expiration of the instance can be raised when a file remains inactive, preventing eternal processes. “This would allow for more reasonable and predictable amounts,” they assure. 2) Eliminate “solidarity quotas” and similar contributions imposed by agreements: they seek to repeal article 9 of Law 14.250, which enables “solidarity quotas”, “social quotas” or other contributions in favor of unions that end up being an additional cost. In this regard, they indicated that “in many cases, these charges are set in negotiations where a large part of the companies are not represented and it is also difficult to control the destination of those funds” and affirmed that “it also prevents the 'disguising' of extra costs for companies under this scheme”. 3) That employer contributions or special contributions provided for in collective agreements be voluntary, whatever their name or objective, including those destined for training, maintenance or creation of institutions, or benefits for chambers and associations. 4) That the employer not be an withholding agent for union contributions: they propose that the employer not be obligated to withhold union membership dues.