News|Labour RightsArgentina Senate approves contentious Milei-backed labour reformsPresident Javier Milei’s administration says the changes ⁠will spur investment, but labour unions ​contend they weaken worker protections.

On Fri, Oct 6, 2023, Argentina's Senate passed a significant labour reform law, backed by President Javier Milei. This legislation, known as the "labour modernization law," aims to modify existing hiring regulations, extend permissible working hours, and impose new constraints on the right to strike.

The Senate approved the law with 42 votes in favor, 28 against, and two abstentions. The administration argues that these changes will stimulate investment and create formal employment opportunities, although labor unions have expressed concerns about potential weakening of worker protections.

Relaxation of hiring rules Changes to the vacation system Extension of the standard workday from eight to 12 hours Allowance for salaries to be paid in foreign currency New tax incentives for hiring Pathways to register informal workers legally Requirements for essential services to maintain minimum operations during strikes

The bill has led to public protests, with labor unions and citizens voicing their opposition due to perceived reductions in labor rights. Protests have resulted in multiple confrontations with law enforcement. A recent survey indicates a divided public opinion, with 48.6% supporting the reforms and 45.2% opposing them.

Supporters argue that these reforms are necessary to enhance productivity, attract foreign investment, and reduce labor-related lawsuits. Since assuming office, President Milei has managed to stabilize the exchange rate and reduce monthly inflation to 2.9% as of January, which has garnered positive feedback from the International Monetary Fund.

Despite the economic stabilization, the austerity measures have imposed significant challenges on the Argentine population, leading to widespread economic hardship.

Based on reporting by Al Jazeera.