Politics Economy Local 2025-10-30T22:28:41+00:00

Government's Labor Reform Proposes Longer Hours and Salary Caps

Argentina's government is advancing a labor reform that includes longer hours, salary caps, and the elimination of collective bargaining, sparking controversy over worker protections.


Government's Labor Reform Proposes Longer Hours and Salary Caps

The government is pushing a labor reform that includes longer working hours and salary caps. The concept of a 'dynamic salary' is also gaining traction. In an interview with Aire Libre, labor law specialist Sebastián Serrano Alou explained this concept: 'What this reform seeks in terms of salary is to establish a ceiling by law instead of a floor. This shows that the goal is not to protect workers, but rather entrepreneurs and business profits.' Regarding merit-based pay, the government proposes that a worker's salary be based on their performance: 'The dynamic salary, which is actually a downward trend, pushes working people into poverty, and it is said that it will be measured by productivity and merit.' Finally, Serrano Alou stated that this reform goes against Article 14 of the National Constitution and is therefore unconstitutional: 'The aim is for labor to not be protected by laws and for the rights established by these laws to be erased from reality.' Following the victory in last Sunday's national legislative elections, the government is seeking to advance its labor reform. Among other aspects, President Milei proposes to eliminate union collective bargaining and for each agreement to be made on a per-company basis, and if possible, between each company and each individual worker.