Argentina is on the brink of significant changes to its labor laws, with the Senate expected to pass reforms proposed by President Javier Milei aimed at reducing the power of trade unions and cutting labor costs for businesses. This move arises in a context where Argentina has seen a staggering loss of 290,600 registered jobs since Milei took office in December 2023, with the government arguing that the reforms will ultimately help revive formal employment. However, the legislation, which includes measures such as increasing the maximum working day from eight to twelve hours and cutting severance pay, has faced considerable opposition. Critics contending that such changes might not lead to job creation or enhance work quality highlight the current situation where over 43% of workers are engaged in informal employment, the highest levels recorded since 2008.

The proposed "labour modernisation act" signifies a break from entrenched labor legislation traditionally shaped by Argentina's Peronist movement, known for upholding worker rights and supporting unions. Supporters, including members of Milei's ruling political party, argue that these reforms are necessary to stimulate the economy and attract investments by creating a more favorable environment for businesses. They claim that the legislation is designed to be pro-business and pro-employee, framing it as a necessary step for the revitalization of the labor market.

However, the controversy surrounding the act reveals a broader societal divide in Argentina about the future of labor rights amid economic hardship. With high levels of informal work and criticism of the impacts on job security and worker rights, many fear that the proposed reforms will exacerbate existing inequalities rather than contribute to meaningful improvement in the labor landscape. As the Senate prepares for the vote, the country stands at a crossroads regarding its approach to labor rights and economic policy in a post-pandemic context.