World February 19, 2026

Argentine lower house to vote on Milei-backed labor overhaul as unions halt services nationwide

Wide-ranging strike action pauses transport, public services and port cargo operations as deputies prepare for a decisive vote

By Derek Hwang
Argentine lower house to vote on Milei-backed labor overhaul as unions halt services nationwide

Argentina's Chamber of Deputies is scheduled to vote on a controversial labor reform bill backed by President Javier Milei while major unions conduct nationwide stoppages. The measure, already approved by the Senate, would restrict strike operations in essential services and cut severance costs by excluding certain bonuses from compensation calculations. Unions say the changes undermine long-held worker protections; the government says the bill will spur investment and formal employment.

Key Points

  • The Chamber of Deputies will vote on a labor reform bill supported by President Javier Milei; the Senate approved the bill last week with support from the ruling party and center-right allies.
  • National unions, led by the CGT, have launched a 24-hour strike affecting transport, public sector and banking services; maritime workers are conducting a separate 48-hour walkout targeting cargo operations at the port of Rosario.
  • The reform would limit strike actions for essential services by requiring minimum operations and would reduce severance costs by excluding certain bonuses from compensation calculations, a change the government says will encourage investment and formal employment.

Argentina's lower legislative chamber is set to take a pivotal vote on a labor reform advanced by President Javier Milei as union federations stage coordinated stoppages that have disrupted parts of the country. The national umbrella union CGT argues the proposed changes would erode established worker protections, including limits on the right to strike.

In response to the legislation, the CGT has organized a 24-hour general strike that has involved transport workers, public sector employees and bank staff. Those walkouts have compounded disruptions caused by maritime workers' federations, which initiated a 48-hour cessation of work on Wednesday aimed at cargo vessel operations, particularly at the port of Rosario - an important agricultural export hub.

The government, by contrast, frames the reform as a means to boost investment and formalize employment. The bill received Senate approval last week with backing from the ruling party and its center-right allies, and supporters contend it will improve the investment climate and labor market flexibility.

Key provisions would place new restrictions on strike activity by requiring that essential services maintain minimum operations during stoppages. The draft also changes severance calculations by excluding certain bonuses from the compensation formula, which would reduce termination costs for employers.

Members of the Chamber of Deputies are expected to hold the vote late on Thursday. If deputies amend the legislation, the bill must return to the Senate for a final approval before it can be enacted into law. Investors are watching the outcome closely as an indicator of whether Milei can continue advancing his free-market agenda.

The unfolding industrial action and the parliamentary timetable together create a period of heightened uncertainty for logistics, financial services and sectors linked to exports, as unions press their objections and legislators prepare for a potentially decisive vote.

Risks

  • Logistical and export disruptions: Ongoing strikes, particularly at the port of Rosario, risk interrupting cargo flows and affect agricultural export logistics and related sectors.
  • Legislative uncertainty: Any amendments in the lower house would send the bill back to the Senate for a final vote, prolonging political uncertainty and market attention.
  • Labor relations and market sentiment: Restrictions on strikes and lower severance liabilities could heighten tensions between employers and unions, influencing investor perceptions of policy continuity and social stability.

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