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Buenos Aires – Argentina is facing a period of significant social unrest as President Javier Milei’s ambitious labor reforms advance through the legislature. Thousands of protesters took to the streets of the capital on February 11, 2026, voicing strong opposition to the proposed changes, which the government argues are crucial for economic recovery but unions and opposition groups denounce as detrimental to workers’ rights. The protests underscore the deep political divisions within Argentina and the challenges Milei faces in implementing his pro-market agenda.
The labor reform bill, a cornerstone of President Milei’s economic shock therapy, aims to significantly alter Argentina’s labor laws, which have remained largely unchanged since the 1970s. The proposed changes seek to lower employer costs, encourage hiring, ease severance obligations, and redefine collective bargaining agreements, according to the Buenos Aires Times . The reforms also include reductions in domestic taxes on cars, mobile phones, and rental properties. The government contends these measures are necessary to stimulate economic growth and attract foreign investment, but critics argue they will exacerbate income inequality and weaken worker protections.
Senate Approval and Escalating Protests
Argentina’s Senate approved the labor reform bill early on February 12, 2026, marking a key victory for Milei’s administration, Reuters reported. The vote followed a day of intense protests outside Congress, where trade unions mobilized thousands of workers, blocking traffic and clashing with police. The Associated Press documented scenes of protesters throwing Molotov cocktails and police responding with water cannons and tear gas . Despite the unrest, the Senate passed the bill with a vote of 42-30, sending it to the lower house for further debate.
Protesters clash with police during a march by trade unions and opposition groups against a labor reform bill proposed by President Javier Milei’s government in Buenos Aires, Argentina, Wednesday, Feb. 11, 2026. (AP Photo/Rodrigo Abd)
Concessions and Political Maneuvering
To secure sufficient support for the bill, Milei’s administration made 28 concessions to lawmakers and provincial governors, the Buenos Aires Times reported. Notably, an article that would have lowered employers’ income taxes was removed due to concerns about reducing provincial revenue. Another concession involved removing a provision that would have allowed workers to deposit salaries directly into virtual wallets like Mercado Pago, a setback for Argentina’s fintech industry. Despite these changes, the core tenets of the labor reform remain intact.
Regional and International Context
Argentina’s economic situation has been precarious for years, marked by high inflation, debt, and a history of economic instability. Milei, a self-described libertarian, was elected in November 2023 on a platform of radical economic reforms, including dollarization and austerity measures. The labor reforms are seen as a crucial test of his ability to deliver on those promises and restore confidence in the Argentine economy. Investors have been closely watching the bill’s progress as a signal of Milei’s political strength, with approval potentially lowering Argentina’s sovereign risk and paving the way for issuing international bonds. The reforms also arrive amid broader concerns about the rise of populism and political polarization in Latin America.
Clashes and Concerns over Escalation
The protests on February 11th were not without violence. France24 reported that protesters clashed with police, and Molotov cocktails were thrown . Even as most of the capital’s downtown operated normally during the demonstrations, the clashes raise concerns about potential escalation and further unrest as the bill moves to the lower house. The US News & World Report noted that the labor overhaul is considered crucial to Milei’s shock therapy program .
What to Watch Next
The labor reform bill now heads to the lower house of Argentina’s Congress, where it is expected to face further debate and potential amendments. The outcome of the vote in the lower house will be a key indicator of Milei’s ability to maintain political momentum and implement his broader economic agenda. The government’s next steps will likely involve engaging in further negotiations with labor unions and opposition groups in an attempt to mitigate resistance and build consensus. The situation remains fluid, and the potential for further protests and social unrest remains high.
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