BUENOS AIRES: Argentine President Javier Milei scored a crucial victory in congress Friday with the approval of a sweeping labor reform aimed at radically altering labor relations in the South American country.
With 42 votes in favor, 28 against and two abstentions, the Senate passed the government-backed initiative into law. The reform seeks to modernize labor relations, lower labor costs and limit the historical power of unions.
“Historic! We have a labor modernization,” Milei said after the overhaul was approved.
Shortly before the debate began in Argentina’s upper house, clashes broke out between police and protesters participating in a demonstration organized by unions, opposition political groups and left-wing social organizations outside the Parliament building to oppose the reform. At least three people were arrested.
The bill, which grants employers greater flexibility in matters of hiring, firing, severance and collective bargaining, has drawn fierce opposition from critics who argue it would roll back measures that protect workers from abuse and Argentina’s notoriously frequent economic shocks.
