La Libertad Avanza pushes labor reform forward in Senate after initial delays

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.

Building on recent delays caused by President Javier Milei's absence for the Nobel ceremony in Oslo and negotiations with the General Confederation of Labor (CGT), La Libertad Avanza (LLA) is now accelerating its labor reform package in Argentina's Senate. Vice President Victoria Villarruel has summoned the Labor Parliamentary Commission for Tuesday, Dec. 17, while Security Minister Patricia Bullrich coordinates debates to issue a report swiftly. The government targets at least half-sanction in December, with full approval in February 2026 extraordinary sessions.

Key measures include reduced contributory charges for employers to promote formal job creation. Peronism and the CGT continue to oppose, citing risks to job security, though elements like the Labor Cessation Fund have support from groups such as Industriales Pymes. This contentious bill competes with the 2026 Budget in a packed legislative calendar, balancing deregulation against worker protections amid high inflation and unemployment.

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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.

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.

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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.

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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La Libertad Avanza, President Javier Milei's party, secured a surprise victory in the October 26, 2025, legislative elections, exceeding 40% of votes nationally and overturning defeat in Buenos Aires province. The win, boosted by U.S. financial support, strengthens the ruling party's hold in Congress. Peronism, led by Fuerza Patria, placed second with about 31%, amid the lowest voter turnout since democracy's return, with over 12 million abstentions.

Building on the Senate committee's recent dictamen approval excluding a controversial Deputies-rejected chapter, Patricia Bullrich is urgently mending ties with PRO, UCR, and governors upset over exclusive deals, ahead of the December 26 session on the 2026 Budget and Fiscal Innocence Law.

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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.

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