President Javier Millay’s government says the changes will encourage investment, but trade unions say they will weaken protections for workers.
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Published February 28, 2026
Argentina’s Senate has approved a labor reform plan backed by President Javier Millei that loosens employment rules, allows longer working hours and imposes new restrictions on the right to strike, sparking renewed protests against the government’s austerity measures.
The Senate passed the so-called Labor Modernization Act on Friday with 42 votes for, 28 against, and two abstentions, handing the Liberal president one of his most significant legislative victories.
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Millais’ government claims the changes will encourage investment and create formal jobs, while unions say they will weaken protections for workers.
The bill has brought thousands to the streets over the past two weeks to protest what they see as a rollback of workers’ rights.
Two protests outside parliament ended in clashes between police and demonstrators, while a third on Friday caused only minor disruption.
According to a recent poll, Argentine citizens are divided in opinion, with 48.6% in favor and 45.2% opposed.
Sergio Emiliozzi, a 60-year-old teacher, told AFP that the law is being promoted as a job-creation tool, but “quite the opposite is true,” adding: “With this law, I can easily be fired.”
Unions are also opposing new restrictions on the right to strike to demand essential services to maintain minimal business operations during work stoppages.
Supporters, however, say the changes are essential to boost productivity, attract foreign investment and curb labor lawsuits.
They also praised new tax incentives for employment and provisions that provide a path to legal registration for Argentina’s large number of undocumented workers.
The reforms also ease employment rules, change vacation policies, extend the standard working day from 8 hours to 12 hours, and allow salaries to be paid in foreign currencies.
Analysts see the bill’s passage as a sign that Milley has political support to push for broader free-market policies.
Since taking office, he has stabilized the exchange rate and curbed inflation, bringing monthly inflation down from double digits to 2.9% in January, earning praise from the International Monetary Fund.
However, austerity measures have had a severe impact on the Argentine people, causing severe economic strain for many.
