Argentina's Lower House Approves Labor Reform
Analysis based on 11 articles · First reported Feb 19, 2026 · Last updated Feb 20, 2026
The approval of Argentina's labor reform bill by the lower house signals progress for President Javier Milei's free-market agenda, potentially attracting foreign investment and boosting formal employment. However, ongoing union opposition and strikes could create short-term market volatility and uncertainty regarding the full implementation of the reforms.
Argentina's lower house of Congress approved a contentious labor reform bill backed by libertarian President Javier Milei, despite a nationwide strike by unions. The bill, which aims to make it easier to hire and fire workers, reduce severance pay, and limit strike rights, was passed with 135 votes in favor and 115 against. It will now return to the Senate for a final vote after modifications, including the removal of a clause reducing sickness benefits. Investors are closely monitoring the legislation as a test of President Javier Milei's ability to implement his free-market agenda, which the government claims will spur investment and boost formal employment. Unions, led by the General Confederation of Labour (CGT), argue the reforms threaten worker protections and staged a 24-hour strike that disrupted transport and public services.
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