In a critical move for President Javier Milei's government, the Argentine Chamber of Deputies has passed a labor reform project that enjoyed broad support from provincial governors. This legislative milestone involved a general approval with 135 votes in favor against 115 opposed, despite controversies surrounding specific articles such as the amended provisions on medical leave. The initial proposal included the establishment of a Labor Assistance Fund (FAL), which faced opposition concerns about its potential impact on the pension system and its role in financing layoffs within the private sector.

The approval process was closely contested, especially regarding Title I, which addresses medical leave policies. After the contentious Article 44 was eliminated, the first title was passed with 133 votes for and 116 against, indicating a significant division on the issue. Moreover, Title II, which included the Labor Assistance Fund, garnered approval with a score of 130 votes in favor, 117 against, and three abstentions. This aspect reflects ongoing tensions within the legislature about the implications of the reforms on workers' rights and the financial stability of social security systems.

As the bill proceeds to the Senate for deliberation, the outcome remains uncertain, particularly given the opposition's vocal critiques. The backing of governors suggests a strategic alliance for Milei's administration, but it also raises questions about the long-term sustainability and effects of the proposed labor changes on the Argentine workforce and economy. The debate is set to intensify as the Senate prepares to take its turn on this significant reform, impacting the broader socio-economic landscape in Argentina.