Argentina's labour reform triggers mass strikes and clashes over weakened worker rights
A controversial labour reform in Argentina has sparked widespread protests after the government approved sweeping changes to employment laws. The new measures, passed by a narrow vote, allow easier hiring and firing, alter overtime rules, and restrict strike rights—prompting a 24-hour general strike that disrupted transport and led to clashes with police.
The reform was approved by the lower house with 135 votes to 115, following Senate backing. It introduces a time-account system for overtime, shifts severance pay costs from employers to a social security fund, and limits strike actions in essential services. Critics argue the changes weaken worker protections, particularly after the closure of major firms like tire manufacturer Fate, which laid off all 920 jobs.
The CGT union federation organised Thursday's strike, claiming 90% participation. Buses, trains, and flights were halted, though schools and many shops stayed open. Protesters blocked roads, and police made at least eleven temporary arrests during clashes. Economists question President Javier Milei's pledge that the reform will create jobs, as manufacturing has lost 53,000 jobs since November 2023 due to liberalised imports and plant closures.
Beyond manufacturing, broader economic policies under Milei include 38,000 public-sector job cuts and closures of state-run banks. The law also abolishes the legal status of professional journalists, removing labour protections in print media. Official unemployment stands at around 6%, but the informal sector accounts for 45% of the economy.
The reform shifts financial burdens to workers while easing rules for businesses. With protests ongoing and jobs losses mounting, the government faces pressure to address economic instability. The strike's impact on transport and public order highlights deep divisions over the new labour policies.
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