Argentina's Contentious Labor Reform Sparks Nationwide Strike

Argentina's lower house of Congress has passed a controversial labor reform bill despite a national strike from unions. The bill, backed by President Milei and his allies, aims to encourage investment and jobs. Critics highlight changes that reduce labor protections and impact the pension system.

Argentina's lower house of Congress approved a divisive labor reform bill on Friday, advancing President Javier Milei's market-oriented agenda despite widespread opposition from unions. A national strike had taken place the day before in protest against the proposed changes.

The bill, which passed after lengthy debates by 135 votes to 115, is being closely monitored by investors for indication of Milei's political clout. While the government claims the reform will boost investment and employment, critics argue it undermines worker protections and the pension system.

Controversially, the reform allows layoffs to be more cost-effective for employers and introduces a severance fund affecting pension resources. It also expands work hours and changes holiday rules. Unions believe these changes threaten labor rights, pointing to recent strikes as evidence of worker discontent. The Senate is expected to finalize the discussion next week.

(With inputs from agencies.)