National strike exposes union resistance to reform of the Argentine labor market

Argentina registered this Thursday (19) a wide-ranging general strike called by the General Confederation of Labor (CGT), in response to the advancement of labor reform promoted by President Javier Milei. The strike coincided with the beginning of the analysis of the project by the Chamber of Deputies, after approval of the text by the Senate the previous week, and resulted in significant interruptions in public transport, banking services, state offices and national and international air operations.

The union mobilization, the fourth since Milei took office in December 2023, caused flight cancellations, including regional routes to Brazil, and reduced urban circulation in Buenos Aires and other large cities. Reports from international agencies and vehicles such as Reuters and Clarín indicate that railway lines, subways and part of the bus system operated with a strong reduction or complete stoppage, while banks and public bodies maintained limited service. The Argentine Ministry of Security stated that it would monitor the protests and warned that episodes of violence could result in police repression, in addition to establishing delimited areas for journalistic coverage.

The strike reflects union resistance to one of the most comprehensive reforms of the Argentine labor market in decades, considered by the government to be the centerpiece of the macroeconomic stabilization and private investment stimulus program. The CGT and worker organizations classify the proposal as a historic setback and point out that contractual flexibility and the reduction of penalties for employers could increase precariousness and weaken collective bargaining.

The core of the controversy lies in the changes that increase the flexibility of working hours, allow for a longer trial period and create alternatives to the traditional severance pay model. Economists interviewed by vehicles such as La Nación and El Economista note that replacing concentrated compensation with termination funds can reduce business costs and litigation, but also change the worker’s financial protection at the time of dismissal. Another sensitive point is the creation of the figure of the independent worker with collaborators, interpreted by experts as a potential incentive to replace formal relationships with more flexible arrangements.

The reform also provides incentives for the formalization of informal workers, with partial forgiveness of fines and reduction of retroactive charges. Data from the National Institute of Statistics and Census (INDEC) indicate that informality exceeds 40% of the Argentine workforce, which reinforces the government’s argument that flexibility could increase formal employment and social security revenue. Unions, however, claim that the measure could generate turnover and weaken consolidated rights.

The strike gained intensity because of provisions that directly address the right to protest. The text establishes that blockades that prevent companies from operating can be considered grounds for dismissal for just cause, which, according to union leaders, restricts the ability to mobilize. The government maintains that the rule seeks to balance the right to strike with the guarantee of the functioning of economic activities and the right to work.

The project’s processing in the Chamber is expected to continue in the coming weeks, with the government seeking approval by the beginning of March. If deputies introduce relevant changes, the text will return to the Senate. Meanwhile, unions signal that new mobilizations are not ruled out, keeping labor reform at the center of the country’s political and social tension.