Breakthrough in Argentina: Senate Approves Javier Milei's Controversial Labor Market Reform

The Argentine Senate, after a marathon and tense session, adopted the key tenets of the labor reform promoted by President Javier Milei. The bill was supported by 42 senators, opposed by 28, with two abstentions. This is a turning point for the libertarian government, which seeks a complete overhaul of the state's economic structure. The new regulations introduce a "labor modernization" system, which in practice means moving away from the traditional model of worker protection towards market mechanisms. The most significant change is a drastic reduction in dismissal costs through the introduction of a severance fund, which is intended to encourage entrepreneurs to create new jobs but, according to opponents, undermines employment stability. Furthermore, the amendment extends the probation period for newly hired individuals, giving companies greater freedom in staff rotation without financial consequences. The reform also touches on working hours, enabling the introduction of 12-hour workdays under specific accounting models. For trade unions, strongly linked to the Peronist movement, this is a blatant attack on rights acquired over decades. While decisions were being made in the chamber, the streets around Congress became an arena for protests. Demonstrators clashed with police, chanting slogans about "selling out the homeland" and exploitation. Simultaneously, the parliament passed a controversial bill lowering the age of criminal responsibility from 16 to 14 years. The government justifies this step as necessary to fight organized crime, in which minors are often involved. These changes, although supported by a part of society weary of insecurity, are met with deep resistance from organizations dealing with children's rights. The Peronist movement, dominant in Argentine politics for most of the 20th century, built a system based on strong social protection and the power of trade unions, which led to a rigid labor market and chronic budget deficit. President Milei described the voting result as a historic triumph over the "political caste" that blocked Argentina's development. The government promises that after flexibilizing the labor market, the next step will be reform of the extractive sector, including changes to the law protecting glaciers, which is intended to unlock billions of dollars in investments in lithium and copper mines. Investors on the Buenos Aires stock exchange reacted with optimism, hoping for macroeconomic stabilization. Nevertheless, the opposition and union federations have already announced plans to challenge the regulations in the Supreme Court and organize a general strike. The situation in the country remains extremely polarized, and the success of the reform will depend on whether the promised economic growth occurs faster than the patience of a society affected by drastic public spending cuts runs out. „Es un punto de inflexión en nuestra historia, el fin de la era de la decadencia y el comienzo de la Argentina de la libertad.” (It is a turning point in our history, the end of the era of decadence and the beginning of the Argentina of freedom.) — Javier Milei