Argentina's Senate approved President Javier Milei's central labor reform early Thursday, advancing a cornerstone of the president's economic program that supporters say will modernize the country's labor framework. After more than 13 hours of deliberation, senators voted 42 to 30 to pass the measure and send it to the lower house for debate.
In a statement after the vote, Milei described the legislation in strong terms: "This law represents a turning point in Argentine labor history," and called it a "profound transformation" he said would reduce bureaucracy and update regulations he labeled outdated in the face of economic and technological change.
The reform package was adjusted during the parliamentary process. Lawmakers removed a provision that would have reduced income tax rates from 35% to 31% - a change that had been sought by provincial governors - and incorporated new concessions to powerful labor unions.
The approved measures make several substantive changes to labor rules. Among the revisions are eased hiring regulations, alterations to the vacation time system, provisions that allow extending the standard workday from eight to 12 hours, and new limits on the right to strike.
Opposition Peronist senators contested the package, arguing that it threatens long-standing worker protections. The measure nevertheless obtained majority support in the Senate and now awaits debate in the lower chamber.
The law's passage occurred against a backdrop of unrest outside the legislature. The session unfolded as protesters hurled Molotov cocktails and clashed with police outside Congress, creating a tense environment around the deliberations.
What happens next
With Senate approval, the bill will be taken up by the lower house for further discussion and voting. The removal of the income tax cut and the addition of concessions to unions were among the changes made to secure sufficient support for passage in the upper chamber.
Implications highlighted in the debate
- The administration framed the overhaul as a way to reduce red tape and align regulations with current economic and technological conditions.
- Opponents emphasized risks to worker protections under the new rules, including limitations on the right to strike and changes to working hours and vacation provisions.
- Public unrest surrounded the legislative session, with clashes between protesters and police reported outside the congressional complex.
The Senate vote marks a significant procedural step for President Milei's agenda, but the legislation's final form and legal standing will depend on forthcoming deliberations in the lower house.