Argentina's Senate Greenlights Landmark Labor Reform Amid Controversy

Argentina's Senate passed President Javier Milei's labor reform bill, a step forward for his economic agenda. The reform aims to spur investment by easing hiring rules and changing labor laws, though it faces opposition from those concerned about worker protections.

Argentina's Senate approved President Javier Milei's flagship labor reform bill early Thursday, marking a significant milestone in the libertarian leader's sweeping economic agenda. After a lengthy 13-hour debate, senators voted 42 to 30 to pass the reform, setting the stage for its debate in the lower house.

The approval is expected to reassure investors observing Milei's ability to implement his free-market policies. Describing it as a 'turning point in Argentine labor history,' Milei emphasized that the law would streamline bureaucracy and update regulations to meet modern economic and technological challenges.

However, the reform has faced pushback from opposition Peronist senators, who argue it threatens established worker protections. Key changes include easing hiring rules, altering vacation time, extending work hours, and revising severance pay calculations, while maintaining the responsibility for union dues collection to placate labor groups.