Volkswacht Bodensee - Milei labor law reforms spark clashes in Buenos Aires

Protesters lobbed rocks and firebombs at police, who responded with teargas and water cannon as senators debated a bill central to President Javier Milei's free-market agenda.

Milei argues that Argentina's current labor laws are too restrictive and dissuade employers from on-the-books hiring.

Almost 40 percent of Argentine workers lack formal employment contracts.

But unions say the reforms erode workers' rights.

"Labor reform doesn't mean creating jobs, but rather making jobs more precarious," said demonstrator Ernesto Pasarin, his eyes watering from tear gas.

"With this exploitative labor reform, they are only thinking about the wealthy. Those who benefit are the bosses," Federico Pereira, a 35-year-old sociologist, told AFP.

The draft law reduces severance pay, allows payments in kind and restricts vacation usage, among other proposals that the General Confederation of Labor considers "regressive."

The Senate is expected to vote later Wednesday on the legislation, after which it will be put to the lower Chamber of Deputies.

Milei, who has forged ahead with his reform agenda since triumphing in October mid-terms, wants lawmakers to adopt the bill by March.

"Today we are here to decide whether we remain trapped in a statist, corporate, and patronage-based system that has driven away investment, destroyed jobs, and impoverished millions of Argentinians," or transform the country into "a modern, free, and prosperous Argentina," argued Joaquin Benegas Lynch, a ruling party senator.

Since taking office in December 2023 with a plan to revitalize Argentina's struggling economy, Milei has dramatically reduced government spending and spurred deregulation.

R.Fischer--VB