The Milei government is preparing a labor reform aimed at further flexibilizing the labor market. Secretary of Labor Julio Cordero announced the key initiative: to change the role of collective bargaining agreements. Currently, they set 'floors' (minimum wages), but after the reform, they would become 'ceilings' (maximum reference points). This would allow companies to negotiate wages below national standards, weakening the position of trade unions. The government claims this will adapt wages to each firm's capabilities and 'promote the sustainability of formal employment.' However, critics see this as a plan to keep wages at poverty levels, as inflation has long exceeded the 1% cap allowed for negotiations. Cordero, representing the interests of the Techint group, has been working on this project for two months. He also defended the previously passed 'Bases' law, which removed penalties for companies violating labor legislation. According to analysts, since Milei took office, public sector real wages have fallen by 19%, and in the private sector by 5% over 10 months, with 28 companies closing daily. The government plans to introduce this reform in the second half of its term, with the explicit goal of preventing wages from rising again.
Milei's Labor Reform: Wages Under Control
Argentina's government, led by Julio Cordero, is preparing a reform to change collective bargaining agreements from setting 'floors' to 'ceilings' for wages. Critics see this as a plan to impoverish the population, while authorities claim it will protect businesses and jobs.