Key week in Congress as Milei’s labour reform reaches lower house

Argentina’s lower house will this week decide the fate of President Javier Milei’s flagship labour reform bill, with the government racing to secure committee backing on Wednesday and hold a floor vote the following day amid a nationwide strike threat.

The Chamber of Deputies formally received the Senate-approved ‘Ley de Modernización Laboral’ on Friday afternoon after it cleared the upper house by 42 votes to 30 – following nearly 16 hours of debate.

The ruling La Libertad Avanza caucus now wants to convert that momentum into full congressional approval before the end of the extraordinary sessions on February 28.

Labour Legislation Committee chair Lisandro Almirón has called a joint plenary session with the Budget and Finance Committee, led by Bertie Benegas Lynch, for Wednesday at 2pm. Milei’s government is seeking a majority opinion that same day in order to take the bill to the chamber floor on Thursday.

Given the breadth of its 26 chapters and the number of lawmakers expected to speak, the session is likely to stretch into the early hours of Friday morning at the very least.

The reform introduces sweeping changes to hiring practices, severance mechanisms and labour litigation rules. One of the most contentious points during the Senate debate was union financing. A proposal to make certain union contributions voluntary was softened after resistance from the Confederación General del Trabajo (CGT) and allied senators.

Fresh controversy emerged over a clause that appeared to allow a 50 percent wage reduction during sick leave. Security Minister Patricia Bullrich said in a television interview the government is willing to amend the wording to guarantee 100 percent pay in cases of severe or degenerative illness.

Any modification by deputies, however, would force the bill back to the Senate for a second review.

Meanwhile, the CGT – Argentina’s largest and most powerful labour federation – has confirmed a 24-hour general strike to coincide with the debate. There is no demonstration planned, workers will just be encouraged not to go to work.

Unions argue the overhaul strips away acquired rights, while Milei’s administration maintains it is the only viable path to boost formal employment and reduce labour-related litigation.

– TIMES/PERFIL