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Milei Government to Send Labor Reform Bill to Congress, Using Vaca Muerta as Template

Santilli says the plan aims to extend protections to informal workers without cutting existing rights.

Overview

  • Santilli confirmed the proposal will be reviewed in cabinet this week before its imminent submission to Congress.
  • The government cites the 2017 Vaca Muerta collective-bargaining changes as the model, including shift reorganization, smaller crews and the removal of paid travel hours.
  • The initiative seeks to bring millions of informal workers into the system, with officials noting roughly 6 million in private formal jobs versus more than 9 million informal.
  • On his first official visit to Neuquén, Santilli met Governor Rolando Figueroa to align on priorities that include the 2026 Budget, tax reform and a new Penal Code.
  • The Interior Minister is touring provinces to build support from governors and legislators, while union leaders have voiced concern about potential flexibilization.