Milei Faces Labor Union Protests as Sweeping Reforms Head to Senate

BUENOS AIRES – A coalition of labor unions, opposition parties and left-wing organizations marched through downtown Buenos Aires on Friday, protesting President Javier Milei’s sweeping labor overhaul currently under debate in the Senate. The bill, which aims to grant employers greater flexibility in hiring, firing, severance, and collective bargaining, has drawn strong opposition from labor unions and their Peronist allies, who argue it would erode worker protections against economic instability.

Legislative Battle and Potential Victory for Milei

The initiative, supported by Milei’s La Libertad Avanza party, could represent a significant legislative victory for the president, allowing him to showcase his economic reforms during his scheduled address at the opening of the ordinary sessions of Congress on Sunday. The legislation initially gained support in the Senate last week, but required amendments following objections from opposition lawmakers.

The Senate is expected to either accept the amendments – paving the way for the law’s final passage – or insist on the original text, which included a controversial clause halving salaries for workers on abandon due to non-work-related injuries or illnesses. The former outcome is widely anticipated.

Tensions and Protests Mark the Debate

The legislative process has been marked by tension between the government and the opposition. Last week, during the bill’s debate in the lower house of Congress, the General Confederation of Labor – Argentina’s largest trade union group – organized a 24-hour nationwide strike. Demonstrators from various leftist groups also clashed with police outside Congress.

Milei’s Rationale and Union Concerns

President Milei views the changes to Argentina’s decades-old labor code as crucial for attracting foreign investment, increasing productivity, and fostering job creation in a country where an estimated two in five workers are employed informally.

Unions contend that the law will weaken the worker protections established since the rise of Peronism in the 1940s, a dominant political movement in Argentina. Approximately 40% of Argentina’s 13 million registered workers are union members, many of whom are aligned with Peronism, according to union estimates.

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