Argentina’s Senate has approved a sweeping labor reform bill following a contentious debate that sparked large scale protests in the capital, Buenos Aires. The legislation, backed by President Javier Milei, is framed by supporters as a necessary step to modernize the labor market and stimulate economic growth, but critics argue it weakens worker protections.
The bill passed after hours of deliberation marked by sharp exchanges between government allies and opposition lawmakers. Outside Congress, demonstrators gathered in significant numbers, chanting slogans and clashing intermittently with police. Security forces used crowd control measures as tensions flared in surrounding streets.
Government officials say the reform aims to reduce hiring costs for businesses, simplify employment regulations, and encourage formal job creation in an economy long burdened by high inflation and persistent fiscal challenges. Provisions include adjustments to severance rules, probation periods, and collective bargaining frameworks.
Opposition leaders contend that the measures disproportionately favor employers and could erode long standing labor rights. Trade unions organized rallies in advance of the vote, warning that the changes may increase job insecurity and reduce bargaining power for workers.
Economic analysts suggest the reform represents a key pillar of the administration’s broader restructuring agenda. Argentina has struggled with economic volatility, including currency depreciation and declining investor confidence. Proponents argue that labor market flexibility is essential to attracting investment and improving competitiveness.
International markets reacted cautiously to the Senate approval. Some investors view the passage as a signal that structural reforms are advancing, while others remain concerned about social unrest and political resistance.
Human rights observers have called for restraint in handling public demonstrations, emphasizing the importance of peaceful assembly. Authorities reported several injuries during confrontations, though official figures have not been independently verified.
The legislation now moves toward implementation phases that will require regulatory adjustments and oversight. Analysts expect continued debate as legal challenges and public opposition could shape how the reforms unfold in practice.
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