Labor reform delayed in Senate amid CGT negotiations

The Argentine government delayed sending the labor reform bill to Congress due to President Javier Milei's absence and last-minute negotiations with the CGT. The initiative might be discussed in committees next week, but approval before year's end is unlikely. The labor union rejects the draft and is pushing for changes to sensitive points.

The labor reform bill promoted by Javier Milei's government has not yet been sent to Congress, preventing its immediate discussion in the Senate. The delay is mainly due to the president's absence, as he returns from Oslo, Norway, after attending the Nobel Peace Prize ceremony for Corina Machado. His signature is required to start the process, with uncertainty about whether the submission will happen tonight or Thursday, according to Noticias Argentinas.

Given these timelines, the Labor and Social Security Committee could meet on Monday or Tuesday, potentially issuing a report on Wednesday. However, treatment in the Senate plenary might only occur on December 29 or 30, making approval this year unlikely, contrary to the government's initial expectations.

Meanwhile, the CGT maintains strong criticisms and accelerates negotiations with the executive on the final text. The union outright rejects the initiative but seeks to at least preserve aspects such as ultra-activity, collective bargaining agreements, and union dues. Cristian Jerónimo, from the Glass Industry Union, described the project as 'regressive' and stressed that without a real negotiation table with labor representatives, they will not support changes affecting acquired rights.

On Thursday, the CGT called its executive council to meet at noon at the Azopardo headquarters to unify positions. Gerardo Martínez from UOCRA was absent from a previous May Council meeting where the government presented preliminary conclusions. Additionally, union leaders like Jorge Sola and Jerónimo met with Peronist legislators such as Guillermo Michel and Gustavo Bordet to analyze the reform and its impact on sectors like citrus and poultry in Entre Ríos. Michel stated: 'A labor reform alone does not create jobs; generating employment requires a sustained economic growth process that protects and promotes industry and national production.'

At 5 PM, the CGT leadership will visit Congress, invited by PJ senators to discuss the bill's content before it reaches the upper house. Meanwhile, in the Casa Rosada, officials admit delays in publication, reviewing sensitive articles due to political impact. Journalist Mariana Mei warned that it is 'quite impossible' to address the labor reform and other initiatives before December 30, given the ambitious agenda of extraordinary sessions and the lack of formed committees.

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Crowds protest labor reform in Plaza de Mayo as Argentine Senate delays Milei's bill debate amid CGT marches.
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Argentine Senate postpones labor reform debate to February amid CGT protests

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Following earlier delays in submitting Javier Milei's government's Labor Modernization bill to Congress, the officialism in the Argentine Senate secured a committee report but postponed plenary debate to February 10, 2026, to incorporate opposition and CGT-proposed changes, coinciding with a massive anti-reform march in Plaza de Mayo.

Javier Milei's government advances a moderate labor reform project, discussed in the Mayo Council and open to changes for Senate approval before year-end. The CGT delayed its decisions until Tuesday's official presentation and prepares an alternative proposal to promote youth employment. A poll shows 61% of the population supports a labor reform, though only 43% backs the official version.

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Following delays due to President Milei's travel and CGT talks, Argentina's ruling party has called a key Senate Labor Commission meeting for Dec. 17, aiming for half-sanction before year-end amid ongoing opposition.

A trade union front, including ATE, UOM and other unions, announced marches on February 5 in Córdoba and February 10 in Rosario to reject the Government's labor reform. Though without the organic support of the CGT, the groups aim to pressure provincial governors and warn of future strikes in Congress. Rodolfo Aguiar of ATE stated that 'the Government has to start worrying'.

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Chief of Staff Manuel Adorni led the year's first officialist political table meeting to devise a strategy ensuring the labor reform's approval in Congress. Interior Minister Diego Santilli will start a tour of key provinces like Salta, Neuquén, and Entre Ríos to negotiate compensations amid unrest over Income Tax changes. This effort aims to address governors' concerns who are conditioning support on fiscal adjustments.

Chilean business guilds voiced opposition to the government's announcement to introduce a ramal or multi-level collective bargaining bill on January 5, 2026, claiming it will have negative effects on employment. CPC President Susana Jiménez called it a political gesture unlikely to succeed, while Sofofa and CCS leaders warned of rigidities and costs for SMEs.

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Chile's Finance Ministry has summoned opposition advisors for a Monday virtual meeting to explain the public sector adjustment bill's controversial 'tying' clause, following initial backlash from president-elect José Antonio Kast's team. The session aims to smooth congressional processing from January 5, while the presidential office orders political appointees to take pending vacations before March's government handover.

 

 

 

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