Volkswacht Bodensee - Argentina moves closer to labor reform, despite protests

The reforms, a pet project of budget-slashing President Javier Milei, would make it easier to hire and fire workers, reduce severance pay, limit the right to strike and restrict holiday rights.

Critics say the move will make jobs more precarious in a country where almost 40 percent of workers lack formal employment contracts.

The Senate voted 42-30 early Thursday to pass the reform, which will now head to the Chamber of Deputies for approval.

It came a day after demonstrators in the capital Buenos Aires hurled stones and bottle bombs at police who responded with tear gas and rubber bullets.

A few dozen people, many hooded and masked, clashed with police blocking access to the parliament, as lawmakers inside the building debated the plans.

AFP witnessed injuries to one police officer and one protester, though an official toll has yet to be made public. Media at the scene estimated that at least 20 people were arrested.

Milei has insisted that existing labor laws are too restrictive and discourage formal hiring. He wants the reforms adopted by March.

- 'Exploitative' -

"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," Joaquin Benegas Lynch, a ruling party senator, told Wednesday's debate.

But for protester Federico Pereira, a 35-year-old sociologist, "with this exploitative labor reform, they are only thinking about the wealthy. Those who benefit are the bosses."

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

Opposition parties and unions dispute that the reforms will create new jobs.

They point out that the economy shows persistent signs of stagnation, marked by declining consumption and industrial activity.

Security Minister Alejandra Monteoliva vowed that those responsible for Wednesday's violence "will be identified" and punished appropriately.

"They are dozens of members of leftist groups who acted in an organized manner, with premeditated violence and improvised weapons to... sow chaos. They will pay," she said on X.

S.Leonhard--VB