Elio del Re criticizes ultraactividad in labor reform for SMEs

ADIMRA president Elio del Re questioned aspects of Javier Milei's labor reform, particularly ultraactividad for SMEs that creates uncertainty. As the government accelerates Senate negotiations for a February 11 session, labor lawyers reject the bill as unconstitutional. Industrial and legal opposition highlights complexities in the current text.

The president of the Asociación de Industriales Metalúrgicos de la República Argentina (ADIMRA), Elio del Re, expressed disagreement with parts of the labor reform project promoted by President Javier Milei. In statements to Radio con Vos, Del Re stated: “The ultraactividad for SMEs is not the right path”. He argued that this provision, which implies annual expiration of collective agreements, “brings more uncertainty, does not foster investment” and will not create jobs on its own.

Del Re acknowledged the need for updates: “A reform is necessary, it is important that it be done. Our collective agreement is from 1974. The world has changed significantly in these last more than 50 years”. However, he warned that “the reform alone will not bring employment. To have employment we need market, we need to produce more, sell more”. He also pointed to difficulties with the order of prelación, which complicates negotiations for metalworking SMEs against union sections.

Meanwhile, the government convened a political table at Casa Rosada on January 26, 2026, led by Cabinet Chief Manuel Adorni, to monitor negotiations. Participants included Karina Milei, ministers such as Diego Santilli and Luis Caputo, and figures like Patricia Bullrich and Martín Menem. The main goal is to approve the reform in extraordinary sessions from February 2 to 27, with a Senate session scheduled for February 11. Technical meetings continue this week, led by Josefina Tajes and Cristian Larsen.

The Asociación de Abogadas y Abogados Laboralistas (AAL), along with the Forum for the Defense of Labor Rights, rejected the project: “Nothing, absolutely nothing in the contents of this legislative treatment project is admissible and compatible with any of the Treaties, ILO International Conventions, and the Argentine National Constitution”. These criticisms highlight tensions in the legislative debate.

Makala yanayohusiana

Argentine Congress scene with President Milei presenting labor reform bill amid CGT union leaders and poll results display.
Picha iliyoundwa na AI

Government pushes moderate labor reform amid union debate

Imeripotiwa na AI Picha iliyoundwa na AI

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.

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.

Imeripotiwa na AI

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.

In the latest pushback against President Javier Milei's labor reform—following CGT's December backlash and Plaza de Mayo march—union leaders met Buenos Aires Governor Axel Kicillof to voice concerns over job losses from economic adjustment and criticize the bill as regressive. The national government dismissed the meeting's significance.

Imeripotiwa na AI

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.

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'.

Imeripotiwa na AI

Gabriel Boric's government included provisions in the public sector readjustment bill restricting civil servant dismissals, drawing criticism from president-elect José Antonio Kast's team, who call them a breach of trust. Arturo Squella, Republican Party president, warned that these measures undermine relations between administrations. The executive defends them as formalizing existing rules.

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