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Argentina’s Senate Approves Milei’s Sweeping Labor Overhaul

The vote hands Javier Milei a decisive win, with unions preparing court challenges.

Overview

  • Lawmakers gave final clearance to the labour modernization law with a 42–28 vote and two abstentions, completing its passage through Congress.
  • The reform relaxes hiring and firing rules, allows workdays of up to 12 hours, trims severance calculations, permits pay in foreign currency, and curbs strikes in essential services.
  • Senators approved a revised text after the government removed a controversial clause that would have cut sick‑leave pay to secure the bill’s passage.
  • Unions including the CGT, which recently led a nationwide strike and street protests, say the law weakens long‑standing protections and will be challenged in court.
  • A contentious measure creates an employer‑financed severance fund drawing on contributions now tied to the pension system, as supporters tout investor confidence and critics warn of social costs in a divided public.