Argentine Senate Approves Labour Reforms Backed by Senator Milei

Argentina’s Senate Approves Labour Reforms

The Argentine Senate has approved a labour reform bill backed by President Javier Milei, which includes changes to hiring rules, working hours, and strike limits. The bill was passed with 42 votes in favour, 28 against, and two abstentions.

According to the government, the reforms are intended to spur investment and create formal jobs. However, labour unions have expressed concerns that the changes will weaken worker protections. The unions argue that the law allows for easier firing of workers and limits their right to strike.

The bill has sparked protests in recent weeks, with thousands of people taking to the streets to express opposition to the reforms. Two protests outside parliament ended in clashes between police and protesters, while a third on Friday saw only minor disturbances.

A recent survey found that Argentinians are divided on the reforms, with 48.6% in favour and 45.2% against. Some supporters of the bill argue that it will boost productivity, attract foreign investment, and limit labour lawsuits. Others praise provisions that offer tax incentives for hiring and pathways to legally register informal workers.

The reforms also include changes to the vacation system, allow for longer working days, and permit salaries to be paid in foreign currency. Analysts see the bill’s passage as a sign of President Milei’s political backing for his broader free-market agenda. The president has implemented policies that have stabilised the exchange rate and cooled inflation, gaining recognition from the International Monetary Fund.

The approval of the labour reform bill is part of a series of austerity measures implemented by President Milei’s administration. While some see these measures as necessary to boost economic growth, others argue that they have had a severe impact on Argentinians, causing economic duress for many.

Source: Al Jazeera