Approval in the Chamber of Deputies came after the government agreed to eliminate the controversial article 44
The lower house of the Argentine parliament approved a labor reform presented by ultraliberal President Javier Milei, after a general strike that paralyzed the country.
The Labor Modernization Law project was approved on Thursday night in the Chamber of Deputies, by 135 votes in favor, 115 against and no abstentions.
The proposal, rejected by Argentine unions, will now return to the upper house of Congress, the Senate, for final approval, a stage that the Argentine Government hopes to complete by March.
Approval in the Chamber of Deputies came after the government agreed to eliminate the controversial article 44, which modified sickness benefit by reducing sick workers’ wages from 100% to 75% or 50%, depending on the case.
The article, rejected by the ruling party’s allies, stipulated a reduction in social security coverage for workers who suffered health problems for reasons unrelated to work, for example, while playing sports in their free time.
At the beginning of the session, deputy Ricardo Almirón, from the coalition that supports Milei, argued that the reform seeks to “promote job creation, update legislation to reflect current times and guarantee the highest degree of protection and freedom for all Argentines and workers”.
Among those who voted against the initiative, Sergio Palazzo, from the Peronist Union for the Fatherland bloc, stated: “They hid under the term ‘labor modernization’ the most brutal regression of workers’ rights that the Argentine people have ever seen.”
Esteban Paulón, from the bloc created in 2025 as an alternative to Milei’s party, United Provinces, asked: “Where is the modernization?” in a reform that does not mention artificial intelligence and that eliminated the teleworking law, enacted after the covid-19 pandemic.
The reform facilitates dismissals, reduces the termination fine, allows the extension of the working day (from 8 to 12 hours), expands the definition of essential services during strikes and authorizes the division of vacations.
Martín Lousteau, from Provincias Unidas, highlighted that the bill discourages the filing of unfair dismissal lawsuits and that workers on digital service platforms will receive half of the minimum pension, which is currently 359,219 pesos (approximately 220 euros).
Current labor legislation in Argentina dates back to 1974, and all attempts at reform in recent decades have met with strong social resistance.
A general strike in protest against labor reform paralyzed public transport, hospitals, ports and schools across the country on Thursday. Hundreds of protesters also gathered in front of the Argentine Congress.
With the parliament building completely surrounded and protected by security forces, members of social organizations and left-wing politicians and several unions displayed flags and posters and chanted slogans against the reform.
