Overview
- Following legislative gains that raise La Libertad Avanza to about 100 deputies, the government is prioritizing labor reform and seeking approval in the first half of 2026.
- The official draft focuses on updating collective agreements, simplifying hiring, reducing litigation via mandatory prior conciliation, and broadening freedom to set contracts and remuneration.
- Proposals include permitting full salaries in U.S. dollars and adopting “dynamic” pay linked to firm productivity or margins rather than automatic indexation.
- Business groups and work-risk insurers endorse changes, citing a 10.2% rise in labor lawsuits over two years and litigation costs above 2 trillion pesos, alongside an increase of more than 120,000 monotributistas since late 2023.
- The CGT says no agreement is possible and plans mobilizations, legal actions and congressional resistance, while the CTA readies an alternative emphasizing inclusion, shorter hours, expanded parental leave and protections for platform workers.