On Friday morning, Javier Milei's government achieved one of its major legislative victories for the year with the approval of the labor reform in the Chamber of Deputies. This came after a challenging passage through the Senate the previous week, where more than 20 amendments were made to the original proposal. In the Chamber, the proposal passed with 135 votes in favor and 115 against, although it will need to return to the Senate to address the removal of an article that reduces worker pay during medical leave.

The labor reform is extensive, consisting of over 200 articles, and introduces significant changes to the labor landscape in Brazil. Key provisions include lowering severance pay, allowing for fragmented vacations, and extending working hours. These alterations have garnered criticism from the opposition, primarily consisting of Kirchnerists, left-wing parties, and labor unions, who have labeled the reform as "regressive" and "unconstitutional," and are mobilizing to contest its legality.

In defending the reform, the government argues that it is necessary to enhance labor market flexibility and improve economic competitiveness. However, the backlash from opposition groups underscores a deep societal divide regarding workers' rights and labor protections. The outcome of this reform will likely have lasting implications for the Brazilian workforce and could lead to further political strife as opposition groups organize to challenge the changes in court.