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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Violent CGT protests outside Argentine Congress: clashes with police involving molotovs, arrests, and injuries during Senate labor reform debate.
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Argentine Senate debates labor reform amid violent protests

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Argentina's Senate began debating the labor reform bill pushed by Javier Milei's government on Wednesday, with the ruling party claiming sufficient votes after 28 modifications agreed with the opposition. Outside Congress, a CGT march against the bill turned into clashes with police, involving molotov cocktails, at least 14 arrests, and 15 injuries. Senators from various blocs voiced criticisms and defenses during the session.

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.

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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.

Building on assurances that changes won't affect acquired rights, Argentina's government detailed its labor reform adjustments to vacations, salaries, overtime, and indemnities. Secretary Maximiliano Fariña called it an update to an outdated law. Unions, including CGT and ATE, are escalating with a December 18 march and strike.

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Senator Pablo Cervi formalized his affiliation to La Libertad Avanza (LLA), raising the official bloc to 20 members in the Senate, right before the debate on Javier Milei's labor reform. Patricia Bullrich, head of the libertarian bloc, announced a special session for February 11 and claimed to have the necessary votes after meetings with dialoguista allies.

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.

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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.

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