Buenos Aires – Argentina’s President Javier Milei is pushing forward with a sweeping labor reform package, securing a key victory with its initial passage in Congress. The advancement of the bill, however, wasn’t achieved in isolation, but through a complex web of negotiations involving figures from across the political spectrum, a dynamic that highlights the pragmatic realities of governing even for a self-described outsider.
The reform, a cornerstone of Milei’s economic agenda, aims to overhaul Argentina’s labor laws, addressing issues such as medical exit and union influence. The government views the changes as crucial for stimulating economic growth and attracting foreign investment. However, the path to implementation has been marked by debate, particularly surrounding proposed modifications to sick leave provisions. The success of this initial vote sets the stage for further legislative battles as the bill moves to the Chamber of Deputies.
Central to navigating this legislative process has been Senator Patricia Bullrich, the head of La Libertad Avanza (LLA) in the Senate. She met with President Milei on Monday, February 16, 2026, at the Quinta de Olivos, despite the national Carnival holiday, to finalize the strategy for securing approval in the lower house, according to reports from Infobae and A24. The meeting was documented with a photo shared on social media by Bullrich.
Negotiating with the “Casta”
Interestingly, the success of the labor reform wasn’t solely driven by Milei’s own party. Reports indicate that negotiations involved individuals often labeled as part of the “casta” – a term used to describe the entrenched political establishment Milei campaigned against. Interior Minister Diego Santilli, with approximately 30 years of experience in public life, including a background in Peronism, played a role in securing support for the bill. Similarly, negotiations were held with labor union leaders and senators from both Peronist and Radical parties, some reportedly influenced by their provincial governors.
This reliance on established political actors, while seemingly contradictory to Milei’s anti-establishment rhetoric, underscores the complexities of achieving legislative goals. As iProfesional reported, Bullrich confirmed that the government is planning to introduce modifications to Article 44 of the labor reform, which concerns sick leave and potential salary reductions for employees taking medical leave, particularly in cases of serious or chronic illnesses.
Broader Economic Reforms
The labor reform is just one piece of a larger effort by the Milei administration to reshape Argentina’s economy. The government is as well focused on finalizing a trade agreement with the European Union and building on a recent trade deal with the United States. These initiatives, combined with the labor reforms, aim to reduce the influence of labor unions, promote international trade, and lessen state intervention in the economy.
Milei’s administration believes these changes are necessary to address long-standing economic challenges, including poverty and inequality. Argentina has historically boasted a large middle class, but a significant portion of that class is now facing economic hardship. The government argues that the current system has fostered an unfair economic landscape, and that these reforms are essential for creating a more just and prosperous future.
What’s Next for the Labor Reform?
With the initial passage in the Senate, the labor reform now heads to the Chamber of Deputies. The government will need to continue navigating complex political dynamics and address concerns raised by various stakeholders to secure final approval. The debate surrounding medical leave provisions is expected to remain a key point of contention. The legislative sessions are scheduled to conclude on February 28, 2026, adding further pressure to the process.
The coming weeks will be critical in determining the fate of this landmark legislation and its potential impact on Argentina’s economic future. The outcome will not only shape the country’s labor laws but also signal the extent to which President Milei can deliver on his promises of radical economic change.
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