Buenos Aires – Argentina’s Chamber of Deputies approved a sweeping labor reform bill championed by President Javier Milei on Friday, February 20, 2026, marking a significant, though not final, step toward its enactment. The vote came after a day of widespread disruption caused by a general strike called to protest the proposed changes, highlighting the deep divisions surrounding the reforms and the challenges facing Milei’s administration.
After 11 hours of debate, the bill passed with 135 votes in favor and 115 against. Dubbed the “modernization” of labor laws, the legislation has been sharply criticized by Argentina’s largest labor federation, the Confederación General del Trabajo (CGT), which labeled it “regressive, and unconstitutional.” The bill previously gained approval from the Senate on February 11, and will return there for final approval following the government’s concession to remove Article 44.
Article 44, which sparked considerable controversy, proposed reducing sick exit benefits for workers, potentially cutting pay from 100% to 50% or 75% depending on the cause of illness. The article’s removal came under pressure from within Milei’s own coalition, La Libertad Avanza (LLA). The reforms aim to address Argentina’s economic stagnation and high levels of informal employment, estimated at 40% of the workforce, according to government figures.
The approved legislation significantly alters labor conditions in a country with a long history of worker activism. Key changes include a revised calculation for severance pay, which is expected to reduce payouts, and the introduction of a “time bank” for accumulated overtime, offering time off in lieu of payment. The bill also limits the right to strike by expanding the definition of essential services and criminalizing certain protest actions.
Strike Disrupts Nation, Protests Turn Violent
The 24-hour general strike, called by the CGT on Monday, February 19, brought much of Argentina to a standstill. Transport services were severely impacted, particularly in the Buenos Aires Metropolitan Area (AMBA), where millions rely on public transportation. This marked the fourth general strike since Milei assumed office in December 2023, according to Buenos Aires Times. Unlike previous protests, union leaders opted not to hold a central rally.
Protests in Buenos Aires escalated into violence near the National Congress, where demonstrators attempted to breach security barriers. Security forces responded, reportedly clashing with protesters, including journalists, according to reports.
Key Provisions and Opposition Concerns
The labor reform package includes several contentious provisions. Martín Lousteau, of the Provincias Unidas bloc, highlighted that the bill discourages legal challenges to dismissals and would halve the minimum pension for workers in digital platform services, currently at 359,219.42 pesos (approximately $254 USD as of February 20, 2026), as reported by sources familiar with the debate.
Opponents argue the reforms will erode worker rights and exacerbate economic inequality. Sergio Palazzo, of the Unión por la Patria (UxP) bloc, stated that the legislation “smuggled in behind the words ‘labor modernization’ the most brutal regression in the rights of Argentine workers.” Esteban Paulón, from the Provincias Unidas bloc, questioned the “modernization” claim, noting the bill’s failure to address artificial intelligence and its repeal of a post-pandemic telework law.
Javier Milei, who assumed the presidency in December 2023, according to Wikipedia, has framed the reforms as essential for economic recovery and job creation. His administration argues that the changes will foster a more flexible labor market and attract investment.
What’s Next for the Labor Reforms?
With the Chamber of Deputies’ approval, the bill now returns to the Senate for final consideration. While the removal of Article 44 addressed concerns from within the ruling coalition, further debate and potential amendments are possible. The outcome will have significant implications for Argentina’s labor landscape and the ongoing economic challenges facing the nation. The government’s ability to navigate the strong opposition from unions and opposition parties will be crucial in determining the ultimate fate of the reforms.
Share your thoughts on the implications of these labor reforms in the comments below.
