Argentina’s Chamber of Deputies passes controversial labour reform bill
Al Jazeera
February 20, 2026
AI-Generated Deep Dive Summary
Argentina’s Chamber of Deputies has approved a controversial labor reform bill, marking a significant victory for President Javier Milei and his libertarian policies. The bill, which passed after a lengthy 12-hour session and following nationwide protests, aims to modernize the country's labor market by making it easier for companies to hire and fire workers. Key provisions include extending the workday from 8 to 12 hours, introducing a "time bank" system to replace paid overtime, and reducing uninterrupted holiday entitlements. Supporters argue these changes will boost productivity, attract foreign investment, and formalize Argentina’s informal workforce, which currently accounts for a large portion of its labor force. However, critics, including trade unions and opposition politicians, warn that the reforms will erode workers' rights and increase job insecurity, particularly affecting vulnerable groups like women and informal workers.
The bill was fiercely contested, with unions organizing national strikes and protests to oppose it. Business leaders remain divided on its potential effectiveness, with some expressing skepticism about whether the law alone can stimulate hiring. Ricardo Diab of the Argentinian Confederation of Medium-Sized Enterprises (CAME) emphasized that job creation depends on production and consumption needs rather than legal changes. Meanwhile, opposition lawmakers like Roxana Monzon have highlighted the risks of exploitation under the proposed "time bank" system, which allows employers to compensate workers with time off instead of mandating paid overtime. This provision, they argue, could disproportionately impact women, who often juggle work and family responsibilities.
The passage of the bill marks a significant shift in Argentina’s labor policies, reflecting President Milei's broader agenda of deregulation and market liberalization. While supporters see it as a step toward economic recovery and modernization, critics view it as a threat to workers' rights and social stability. The debate underscores the tension between fostering economic growth and protecting labor protections, a dilemma that resonates globally as countries grapple with similar challenges in their own policy reforms.
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Originally published on Al Jazeera on 2/20/2026