Argentine President Javier Milei negotiates labor reform with opposition senators in the Senate amid provincial fiscal warnings and Peronist alternatives.
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Government seeks opposition support for labor reform in Senate

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Javier Milei's government is pushing for approval of its labor reform in the Senate by early February, convening opposition leaders. Meanwhile, Salta Governor Gustavo Sáenz warns of fiscal impacts on provinces, and Peronism presents an alternative project without a unified stance.

Argentina's government, led by Javier Milei, is intensifying negotiations to pass its labor reform in Congress. Security Minister Patricia Bullrich convened opposition bloc leaders for Wednesday to align positions and ensure the bill is debated in the Senate by early February. The ruling party targets a possible session on February 11 in the upper house, followed by a debate in the Lower House two weeks later.

Meanwhile, Salta Governor Gustavo Sáenz met with his four congressional legislators on Tuesday to assess the reform's impact. The focus was on the tax chapter, which could affect coparticipation funds and provincial works. "Salta will not resign funds or strategic works," Sáenz warned. Senator Flavia Royón stressed: “It proposes a tax cut that has a fiscal impact on provinces and coparticipable resources.” Deputies Yolanda Vega, Pablo Outes, and Bernardo Biella agreed on defending provincial resources, arguing the national government cannot cut taxes at the provinces' expense. Sáenz, who recently met Interior Minister Diego Santilli, expressed willingness for dialogue: “We shouldn't fear change or progress.”

Unión por la Patria (UxP), the main Peronist opposition bloc, has not set a common stance. In its Tuesday bloc meeting, the issue was not discussed, focusing instead on the Mercosur-EU agreement. Deputy Raquel “Kelly” Olmos presented an alternative labor modernization bill, including simplified collective bargaining, extended parental leaves to 120 and 30 days respectively, a progressive reduction of the workday to 40 hours weekly, and a regime for digital platform workers. Olmos, former Labor Minister, garnered support from legislators like Eduardo Valdés and Agustín Rossi, but lacks endorsement from the cristinista sector or bloc leadership. “It's a deliberative stage until reports are built,” she explained. This indecision highlights internal tensions in UxP, with criticism over the lack of prior debate.

The negotiations underscore the balance between labor modernization and federal protection, with provinces like Salta demanding safeguards for their resources.

Apa yang dikatakan orang

X discussions focus on Salta Governor Gustavo Sáenz's warnings about fiscal impacts and loss of provincial funds from Milei's labor reform. Peronists criticize the reform as regressive and promote alternative projects lacking unified opposition stance. Some note Peronism softening resistance amid Milei's strengthened position, while allies express skepticism on Senate approval timelines. Sentiments include provincial defense, opposition criticism, and doubts on feasibility.

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Argentine Congress scene with President Milei presenting labor reform bill amid CGT union leaders and poll results display.
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Government pushes moderate labor reform amid union debate

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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.

Business leaders from Córdoba's metalworking, cargo transport, and commerce sectors are working with national government technical teams on 10 'surgical' proposals to reduce litigation and enhance predictability without altering basic labor rights. Meanwhile, Córdoba unions unanimously reject the official project, though they differ on tactics, and plan a march this Thursday. Nationally, Milei's government faces hurdles in the Senate, relying on negotiations with governors over fiscal impacts.

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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.

The new CGT leadership, headed by a triumvirate, begins a week of internal meetings to define its position on the labor reform project pushed by Javier Milei's Government. Leaders like Octavio Argüello harshly criticized the initiative, calling it a flexibilization that attacks workers' rights. The Government defended the project, assuring it will not remove rights.

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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'.

The Senate's Finance Committee started reviewing the public sector readjustment bill, presented by Finance Minister Nicolás Grau. Deputies approved a 3.4% gradual salary increase but rejected the 'tie-breaker norm' aimed at greater job stability. Opposition anticipates rejecting that provision again in the Senate.

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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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