There were 42 votes in favor, 28 against and two abstentions; text foresees increase from 8 to 12 hours of work
The Argentine Senate approved this Friday night (27) Javier Milei’s labor reform, which provides for an increase from 8 to 12 hours of work. There were 42 votes in favor, 28 against and two abstentions. The text now goes to presidential approval. After sanction, the new law will come into force according to the deadlines established in the text itself.
The bill has already been approved in the Senate and ratified last week by the Chamber of Deputies, albeit with modifications. The general expectation is that the government will have the necessary votes for the Senate to accept the changes and approve the law.
The “labor modernization law” reduces compensation, allows payments for goods or services, limits the right to strike and extends the working day to up to 12 hours without paying overtime, but compensated with free hours to be agreed. Milei stated that the legislation aims to create “an environment that facilitates hiringboost investment and allow the expansion of formal employment”, in a country where 43.3% of the workforce is in the informal sector.
The text underwent around 30 changes, including the removal of articles that authorized the payment of salaries in foreign currency and changes to the rules on sick leave. The proposal had already been approved in the Senate, but, as it has undergone changes, it will need to be analyzed again by the senators.
What does the reform say?
The Argentine government states that labor reform is essential to reduce informality – which affects more than 40% of the country’s job market – and stimulate job creation by reducing tax burdens for employers. The General Confederation of Labor (CGT), in turn, argues that the changes foreseen in the text are unconstitutional.
Among the main points under discussion is the extension of the working day. Currently, the limit is eight hours a day and 48 hours a week. If the project is approved, the daily working day could reach up to 12 hours, as long as a minimum rest period of 12 hours is respected.
The proposal also provides that overtime can be compensated with days off, instead of payment in cash, as long as there is an agreement between workers and employers. Today, this model is not provided for in general legislation, which determines remuneration for overtime with additional salary.
Contrary demonstrations
With signs such as “no to slavery” and chanting the slogan “the country is not for sale”, hundreds of demonstrators from social groups, unions and the left have gathered since midday in front of Congress to protest against the measure, whose debate promises to last for many hours.
The law’s approval comes amid a decline in industrial activity, with more than 21,000 companies closing in the past two years, and the loss of around 300,000 jobs, according to union sources.
Os Argentines are divided on the merits of the reform: according to a recent poll, 48.6% approve of it and 45.2% oppose it.
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