The Argentine government estimates it has secured the support of five governors to pass the labor reform, while businesses negotiate changes with Senator Patricia Bullrich to avoid judicial challenges. The bill, aimed at modernizing labor legislation, will be debated in the Senate in February. Business chambers back the overall spirit but seek amendments to specific articles impacting collective bargaining and entity funding.
Interior Minister Diego Santilli met with Governor Rolando Figueroa on Wednesday and will meet Rogelio Frigerio tomorrow, as part of efforts to gain provincial support for the labor reform. Government sources indicate they already have backing from five governors for its congressional approval.
Meanwhile, major business chambers, led by the Argentine Chamber of Commerce (CAC), met with Senator Patricia Bullrich to negotiate changes to the Labor Modernization Bill. These groups, including the Argentine Confederation of Medium-Sized Enterprises (CAME) and the Metallurgical Industries Association (ADIMRA), reaffirmed general support for the initiative but demand fixes to details that could defund associations and fragment collective bargaining.
Contested points include articles 126, 128, 130, 131, and 132. Article 126 ends the ultra-activity of agreements, forcing constant renegotiations and creating normative gaps, particularly risky for SMEs. Article 128 removes mandatory employer contributions, impacting training programs. Articles 130 and 131 decentralize bargaining, prioritizing company-level deals over sectoral ones, potentially leading to wage inequalities. Article 132 gives the state discretion to annul homologations, introducing legal uncertainty.
"One of the things to avoid is precisely that. The law that comes out must be one that is applied, not one that is judicializable," said a member of the Group of Six (G6). Mario Natalio Grinman, CAC leader, stated: "We share the spirit of the project centered on adapting legislation to the changes that social and technological transformations impose," but warned of concerns over a few articles.
The bill received a report from the Senate Labor Committee in December, driven by La Libertad Avanza, and is expected for debate in the first half of February. Chambers aim to balance modernization with the sustainability of employer entities, while the ruling party explores alternatives to resolve issues like the Gains tax conflict.
