Overview
- The government is circulating a draft that would update collective bargaining, simplify hiring, curb litigation and expand freedom to negotiate contracts and pay, including productivity-linked “dynamic salaries” and an option to pay full wages in dollars.
- Talks in the Council of Mayo with governors, business and unions are shaping the text, with proposals under discussion that include decentralizing wage agreements to company or regional level, longer trial periods, installment severance payments and a strengthened unemployment fund.
- Labor federations reject the plan, with the CGT preparing political and legal resistance, while the two CTAs develop an alternative rights-focused reform centered on shorter working hours, broader parental leave and protections for platform workers.
- La Libertad Avanza is set to hold roughly one-third of the lower house (about 100 deputies), improving its leverage but leaving passage contingent on agreements with PRO, parts of the radicalism and key provincial leaders.
- Earlier executive labor measures in DNU 70/2023 were ruled unconstitutional and Law Bases changes have drawn criticism for failing to create jobs, as high informality near 43%, rising monotributo registrations and elevated labor litigation frame the debate.