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Milei Readies Labor Overhaul for Post‑December 10 Debate, Centering Company‑Level Deals

A polarized debate pits union resistance against SME support conditioned on tax and credit relief.

Overview

  • The administration plans to submit a broad labor reform to Congress after December 10, with officials saying a draft is circulating but a final bill has not been released.
  • Reported provisions include giving company‑level agreements precedence over sectoral contracts, creating a bank of hours, allowing pay in an agreed currency, installment severance, and excluding platform work from the LCT.
  • Union leaders condemn the approach as weakening protections and signal potential mobilizations, with the CGT seeking deep talks and UOCRA’s Gerardo Martínez warning of protests without real dialogue.
  • Many SME chambers back updating labor rules to curb informality and spur hiring but call for parallel tax, energy and credit measures, legal certainty, and faster dispute resolution to avoid crippling litigation.
  • Research cited in the debate points to tens of thousands of firm closures, large net job losses since 2023, and informality near 42%, while a previous labor decree (DNU 70/23) was suspended by the courts, underscoring legal and political uncertainty.