Politics Economy Local 2026-02-17T19:26:10+00:00

Argentina: Government Backs Down Amid Labor Reform Dispute

The Argentine government has backed down in the face of a dispute over labor reform. Following disagreements over salary cuts for illnesses and accidents, La Libertad Avanza has agreed to amend the controversial article in the bill to ensure its passage through parliament.


Argentina: Government Backs Down Amid Labor Reform Dispute

La Libertad Avanza will sign the report on the labor reform project in committee on Wednesday. The goal is to pass the bill in the Chamber of Deputies on Thursday in a special session, although it will not become law as the controversial article on accidents and illnesses will be modified. While the ruling party wanted to pass the labor reform project this week, the strong controversy over the reduction of salary payments in case of illness and accidents created a rift between LLA and the government's allies, forcing the government to concede and include the change in the report to be considered next Thursday. In the Senate, the head of the Senate bloc, Patricia Bullrich, will seek to issue a committee report on Friday, February 20, to be able to debate the project on Friday, February 27, and have the law approved before President Javier Milei inaugurates the ordinary session period on March 1. The government has guaranteed support for the bill's passage, with 94 of its own legislators, 22 from Forces for Change (UCR, PRO, MID, and For Santa Cruz), nine from Federal Innovation, two from Production and Work, and 10 out of 18 from United Provinces, reaching a total of 136 votes. However, this number will not hold throughout the vote on the 26 chapters, as it is possible that legislators from United Provinces will not support the creation of the Labor Assistance Fund or the repeal of special statutes.