Martín Menem, president of the Chamber of Deputies, backed the labor reform pushed by Javier Milei's government, stating it will benefit workers by promoting formality. However, the General Confederation of Labor (CGT) rejected the bill, demanding tax cuts and genuine dialogue before any progress. The union federation anticipates a fight in Congress, the courts, and the streets if no real negotiation table is opened.
Martín Menem, president of the Chamber of Deputies, defended Javier Milei's government's labor reform bill in a recent statement. He stated that the changes aim to bring more people into “formality” and sought congressional support, assuring: “It will be a success for workers.” The goal is to promote labor formality, reduce litigation, and improve competitiveness without affecting fundamental rights, with potential approval early in 2026 after the Budget debate in February.
Meanwhile, the CGT, under its new leadership with figures like Jorge Solá and Octavio Argüello from Camioneros, firmly opposed the initiative. Solá described the draft as a “flexibilization of rights” that would extend work hours, eliminate overtime, and reduce protections, rather than modernization. He criticized the lack of consultation with workers and productive employers, noting that the debate relies on “rumors” rather than a formal project from the executive.
“Without fine print and without tax cuts, there is no possible dialogue,” Solá warned in radio statements. He insisted that the tax burden, representing 30% to 40% of small and medium-sized enterprises' sales, hampers investment and jobs. “Cut taxes, that's why this government came,” he demanded, prioritizing tax reform over labor reform. On labor lawsuits, he clarified: “If the employer pays what is due, the lawsuit does not exist. Hiring informal workers is a crime”.
Solá emphasized that the CGT arrives “strengthened and united” to the debate, not just to resist but to provide solutions that generate more jobs and better conditions. “If the labor reform discussion is only political, it is poorly framed,” he concluded, highlighting the need for an intelligent state role to ensure clear rules. The union federation plans to fight on all fronts if no serious dialogue opens.