Thousands of Argentine workers have taken to the streets of Buenos Aires to protest against President Javier Milei's push for new labour reforms. The protestors, mobilised by trade unions, protested outside Argentina's Congress on Wednesday as senators moved to debate the president's labour overhaul.
As protestors clashed with security forces outside the Congress building, senators inside passed the labour reforms championed by Milei in a 42-30 general vote.
With the Senate approving the bill, it has now been sent to the lower house for debate.
Amid the legislative debate, protestors clashed with security forces. Stones, water bottles and Molotov cocktails were hurled at cops. As part of their effort to disperse the demonstrators, cops retaliated with rubber bullets, tear gas and water cannons.
Why are unions protesting against the reforms?
As per labour and trade unions, these new reforms have been seen as an attempt to curb organised labour.
{{/usCountry}}As per labour and trade unions, these new reforms have been seen as an attempt to curb organised labour.
{{/usCountry}}The new reforms would restrict workers' right to strike and result in a rollback of employment benefits.
“It’s not modernisation. It’s austerity for the workers,” said the General Confederation of Labour in an official statement.
Furthermore, these new reforms would allow businesses to fire workers easily and reduce severance pay. The overhaul would also restrict labour unions' ability to participate in collective bargaining.
The bill has also been opposed by the left-wing Peronist movement.
“If severance pay, overtime and vacation time — in other words, all the protections workers have gained over time — are up for grabs, it won’t make things better for anyone,” said Axel Kicillof, the governor of Buenos Aires province.
Milei defends labour reforms
Amid pushback from workers and unions, President Milei has stated that the overhaul would allow Argentina to become a free-market economy free of cumbersome regulations.
Milei supporters have also backed the reforms and stated that the current system, with high severance payouts and taxes, makes it almost impossible to fire employees, further constraining productivity and discouraging business from formal employment.
“With the modernization of the labor system, more people will have access to formal, legal employment,” Milei’s La Libertad Avanza party said in a statement as they kicked off the debate, which ended in a win for the president.
“We are rebuilding Argentina from the ground up, starting with employment," the party added further.
What changes have been approved by the senators?
Among the key changes approved by senators, the Milei administration has removed an article that would have lowered employers’ income taxes since lowering the taxes would have also reduced provincial revenue.
Furthermore, the president also took out an article that would have allowed workers to choose to deposit their salaries directly into virtual wallets like MercadoLibre Inc.’s Mercado Pago. This removal in particular has been a setback as MercadoLibre Executive Chairman Marcos Galperin has been a vocal supporter of Milei.
(With inputs from AP, Bloomberg)