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Government to Present Sweeping Labor Overhaul to Argentina’s Senate This Week

Patricia Bullrich will steer Senate talks with room for amendments during extraordinary sessions.

Overview

  • The bill, set to enter the Senate on December 10, proposes narrowing severance calculations by excluding vacations and the aguinaldo and creates a mandatory 3% Fondo de Asistencia Laboral funded via payroll contributions later offset against pension payments.
  • Draft measures include sizable employer-contribution cuts, an end to the ultractividad of collective agreements, priority for company-level accords over sectoral ones, limits on strikes and assemblies, a bank of hours, and the option to split vacations.
  • The government brands the package as moderate and says committee changes are on the table, with Bullrich courting UCR, PRO and provincial blocs to fast-track debate during the December 10–30 extraordinary sessions.
  • Fresh polling by Explanans reports that about six in ten Argentines see a labor reform as necessary, with 43.1% backing Milei’s proposal and unions registering very low favorability ratings.
  • Unions prepare counterproposals and warn of weakened protections, while analysts caution the draft targets larger formal firms and risks missing microenterprises where most informal employment is concentrated.