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Argentina’s CGT Warns of “Forceful Actions” as Milei’s Labor Overhaul Draft Advances

Union leaders say the floated ideas would erode collective bargaining, weakening wage safeguards.

Overview

  • Following legislative gains, Milei has made labor reform a priority, circulating a draft built on four pillars: updating collective agreements, simplifying hiring, curbing litigation, and broadening contractual flexibility with an eye to a 2026 debate in Congress.
  • CGT representative Gerardo Martínez said the union will mobilize with “acciones contundentes” if dialogue is closed, and he asserted there was no consensus in Consejo de Mayo on measures publicized by officials.
  • Unions highlight risks in proposals such as company-level bargaining, banks of hours and “dynamic salaries,” warning these could fragment sectoral talks and depress pay; La Bancaria issued a firm rejection.
  • The government and business groups argue outdated rules, a rise of more than 120,000 monotributistas since November 2023, and a 10.2% two‑year increase in labor lawsuits deter formal hiring.
  • Earlier executive moves via DNU 70/2023 faced court setbacks and the Ley Bases extended probation and created a severance fund, while the CTAs promote an alternative “inclusive” reform with shorter workweeks, broader parental leave and protections for platform workers.