The Argentine government has passed a significant labor reform that lowers severance costs and extends work hours, prompting concerns over worker rights.
Argentina has enacted a new labor reform that significantly favors business interests, described as the most substantial in 50 years, under the leadership of President Javier Milei. The newly passed law allows for cheaper layoffs, extends working hours up to 12 per day, makes overtime pay optional, and reduces employer contributions. The Senate approved this controversial legislation with 42 votes in favor, despite strong opposition and public protests against it across the city, indicating a divided political landscape and societal unrest regarding labor rights.
The 'Labor Modernization Law' comprises 218 articles that extensively modify the previous labor code in place since 1974. Proponents, primarily from the ruling coalition, argue that this reform will increase formal employment and economic activity by providing businesses with greater flexibility in employment practices. However, critics from the opposition warn that these changes could lead to the precarization of labor conditions, putting low-income workers at risk by undermining job security and benefits that safeguard their rights.
The tense atmosphere surrounding the approval of this law underscores the broader conflict between economic policies aimed at promoting growth and the protection of workers' rights. As protests intensify, the implications of Milei's reform may provoke further social unrest and compel a reevaluation of the balance between economic liberalization and worker protections in Argentina, a country with a long history of labor activism.
