Argentina Labor Reform: Controversial Article 44 Withdrawn to Secure Votes

Argentina’s Senate has approved a sweeping labor reform package proposed by President Javier Milei, a move hailed by the government as crucial for economic modernization but met with fierce opposition from labor unions and some political factions. The bill, which underwent significant debate and concessions, now moves to the Chamber of Deputies for further consideration.

Key Provisions and Controversies

The reform aims to reshape Argentina’s labor laws, which have remained largely unchanged since the 1970s. Several key provisions have drawn criticism and prompted widespread protests. Initially, February 11, 2026, saw significant demonstrations in Buenos Aires, with clashes between protesters and police forces, including the use of water cannons and tear gas.

One of the most contentious aspects of the original proposal, article 44, concerned the payment scheme for illnesses or accidents not related to work. This provision proposed shifting from full salary continuation to a 50% or 75% remuneration, depending on the degree of responsibility attributed to the worker in the incident causing the disability. This aspect of the bill faced strong opposition from both the political opposition and dialogue blocks within the government, including the PRO, the UCR, and sectors of non-Kirchnerist Peronism.

However, in a move to secure broader support, President Milei’s Freedom Advances party has decided to remove article 44 from the bill entirely. Patricia Bullrich, the head of the ruling bloc in the Senate, acknowledged the point was “a mistake” and its modification was under evaluation. This decision aims to facilitate political agreement and address concerns raised by various stakeholders.

Other significant changes included in the reform, as reported by Argentina Reports, involve restricting the right to strike, authorizing 12-hour workdays, reducing severance payments, easing restrictions on firing workers, and allowing payment in kind or in foreign currency. The government argues these changes are necessary to “modernize” labor laws, generate employment, and increase economic freedom.

Political Maneuvering and Union Response

The Senate approved the bill with 42 votes in favor and 30 opposed, according to reports. However, the passage required 28 concessions to appease lawmakers, provincial governors, the General Confederation of Labor (CGT), and banks. One concession involved removing an article that would have lowered employers’ income taxes due to concerns about reducing provincial revenue.

The CGT, Argentina’s most powerful labor federation, has responded to the reforms with a planned general strike. The timing of the strike is contingent on the debate in the Chamber of Deputies. Union leaders have denounced the reforms as a “blow to hard-won rights” and have threatened further strike actions if the bill continues to advance.

Next Steps and Timeline

With the removal of article 44, the revised bill will now return to the Senate for review of the changes made by the Chamber of Deputies. The government aims to finalize the law’s sanction within the period of extraordinary sessions, which concludes next week, before the opening of ordinary elections on March 1st.

The proposed reforms represent a significant shift in Argentina’s labor landscape, reflecting President Milei’s broader economic agenda. The debate surrounding the bill highlights the complex interplay between economic modernization, worker rights, and political considerations. The outcome in the Chamber of Deputies will be crucial in determining the future of Argentina’s labor laws and the potential impact on its workforce.

The reforms, as outlined by ColombiaOne.com, seek to completely transform the labor relations system, which has not undergone major changes since the 1970s. The approval by the Senate marks a key advance for the libertarian leader’s sweeping economic agenda.