Labor Reforms Sweep Across Latin America: Argentina, Mexico, and Bolivia Navigate Modernization
Across Latin America, a wave of labor reforms is reshaping the landscape of work, sparking debate and, in some cases, protests. From Argentina’s recent passage of sweeping changes to Mexico’s reduction of the work week and Bolivia’s consideration of modernization, governments are grappling with how to balance economic growth, worker protections, and evolving employment models.
Argentina Approves Controversial Labor Reform
On February 28, 2026, the Argentine Senate approved a contentious labor reform package backed by President Javier Milei. The reforms, aimed at boosting hiring and loosening employer liabilities, have been met with resistance from labor unions. Key changes include limiting the right to strike, reducing unions’ bargaining power, making it easier to fire workers, extending probation periods, curbing workers’ ability to sue employers, cutting severance pay, and empowering employers to mandate 12-hour workdays. The law passed with 42 votes in favor, 28 against, and two abstentions.
Approximately 40% of Argentina’s workforce lacks formal employment contracts, and unions fear the fresh bill will exacerbate this situation. The government argues the reforms will reduce under-the-table employment and create new jobs by lowering taxes on employers. Recent polls indicate a divided public, with 48.6% in favor and 45.2% against the changes.
Mexico Reduces Work Week to 40 Hours
In contrast to Argentina’s move towards greater flexibility, Mexico has recently approved a constitutional amendment reducing the standard work week from 48 to 40 hours. The decrease will be implemented gradually, starting next year. Overtime hours have as well been increased from 9 to 12 hours per week, with compensation set at 200% of the regular salary for any hours exceeding that limit. The initiative has been widely celebrated by Mexican workers and unions, who see it as a significant improvement in work-life balance.
Union coordinator Pedro Haces stated that the 48-hour work week had been in place for 106 years and that change was long overdue.
Bolivia Considers Labor Law Modernization
In Bolivia, discussions are underway regarding potential labor law modernization. The business community and the government of Rodrigo Paz are advocating for updates to the General Labor Law (LGT), which they deem outdated. Minister of Labor Edgar Morales anticipates the consolidation of these changes, believing the LGT requires updating to reflect current work practices.
The Federation of Private Business Entities of Cochabamba (FEPC) has presented a draft proposal to Minister Morales, outlining potential changes. The proposal suggests adding “regulated flexibility” to the law, differentiating it from precariousness, and allowing for terminations based on objective causes such as economic downturns or technological innovation.
However, the Bolivian Workers’ Central (COB) and factory workers’ federations have firmly rejected any dialogue or negotiation regarding modernization, fearing an attack on social achievements and worker protections. They have declared a state of emergency and mobilization, threatening protests and strikes if the project moves forward.
A Region in Transition
These developments highlight a broader trend across Latin America, as governments seek to adapt labor laws to address economic challenges and changing work dynamics. The contrasting approaches of Argentina and Mexico demonstrate the diverse perspectives on how to achieve this goal, with some prioritizing business flexibility and others focusing on worker protections. The situation in Bolivia remains fluid, with the potential for significant changes depending on the outcome of ongoing negotiations.