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

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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 Senate chamber during vote approving juvenile penal regime and labor reform, with celebrations and opposition reactions.
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Senate approves juvenile penal regime and labor reform

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Argentina's Senate turned the new Juvenile Penal Regime into law, lowering the age of criminal responsibility to 14, with 44 votes in favor and 27 against, after seven hours of debate. It also approved the labor reform with 42 affirmative votes and 28 negative, incorporating changes from the Lower House that removed a controversial article on sick leave. The ruling party celebrated the advances, while the opposition criticized the measures as harmful to workers and human rights.

Economy Minister Luis Caputo and La Libertad Avanza Senate bloc leader Patricia Bullrich met with allied senators to discuss public works, regional economies, and fiscal balance. The meeting included UCR representatives and provincial dialoguist blocs. The government aims to garner support for its legislative agenda, including electoral reform.

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Leaders from CGT and CTAs support Buenos Aires Governor Axel Kicillof's presidential bid for 2027. They met in La Plata on Monday to address the loss of provincial labor oversight due to national labor reform. Kicillof called the government's actions unconstitutional.

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