Milei’s Labour Reform Proposal
President Javier Milei has introduced a labour reform package aimed at reducing the cost of hiring and lowering informality in Argentina. The proposal includes changes to severance pay, trial periods, and union power.
Key Points of the Reform
- Severance pay will be reduced to 0.5 months’ salary per year of service, capped at 12 months
- Trial periods will be extended to 6 months, with possible extensions to 8 or 12 months
- A new ‘Independent Worker’ category will be created, allowing individuals to hire up to 3 collaborators without being considered employees
- Union power will be curbed, with collective bargaining agreements requiring a majority vote of employees
Union Response
The unions have responded strongly to the proposal, with the General Confederation of Labour (CGT) representing approximately 2 million workers. The CGT has stated that it will not accept fewer rights and is seeking more work and dignity for its members.
Potential Impact
The clash between Milei and the unions could have significant implications for Argentina’s political stability and social landscape. Possible outcomes include a general strike, legislative deadlock, and increased social polarization.
Sources
The information in this article is based on reports from Reuters, UPI, Buenos Aires Herald, and other sources.