The Argentine Lower House passed President Javier Milei’s labor reform in the early hours of Friday with 135 votes in favor and 115 against. 

While the bill has now been formally approved, it will still have to go back to the senate for it to approve a change deputies made to one article in order to formally become the law.

The marathon-type 12-hour session unfolded against the backdrop of a frenetic scene, as deputies debated amid a nationwide strike and protests outside Congress that led to a police crackdown and several arrests.

At least 16 people were arrested and 6 were injured due to the crackdown, according to Herald sister publication Ámbito. Several political parties and social organizations gathered around Congress as the session began at 2 p.m., but were forced to leave as police used water cannons, tear gas and rubber bullets against them, akin to last week during the senate debate.

Called “labor modernization” law, the reform flexibilizes several norms that regulate salaries, shifts, severance pay, trial periods and other aspects of work-life balance and workers’ rights. It also grants fiscal benefits for employers who register their employees.

The approval is a crucial legislative win for President Javier Milei, who is expected to laud the development as a major notch during his March 1 speech opening the legislative year in Congress.

The government published a statement showing their satisfaction with the outcome. 

“The approval of this law means creating more registered work, less informality, labor norms adapted to the 21st century, less bureaucracy, more dynamic work relations, and most importantly, the end of the trial industry in the Argentine Republic,” read the communiqué.

Senators are expected to vote on the change introduced by deputies next Friday, the day before the extraordinary sessions end. 

The final version the lower house passed saw the removal of a highly criticized article docking pay from workers on sick leave depending on whether they got injured or sick due to “voluntary activities” unrelated to their jobs.

The upper house now has to decide whether they agree if that article should be removed or not. Senator Patricia Bullrich and ruling party bloc head has already said that they were willing to eliminate it, granting more support for the provision.

Another section on the tightrope that finally passed was an article creating an investment fund  to pay severance packages. 

Currently, severances are paid in full by employers who fire workers. This new article means that they will now be funded with a percentage taken from employees’ monthly salaries, which is currently destined for retirement pensions. Employers will only have to cover the rest of the severance pay if necessary.

The opposition has said this will affect resources destined for paying pensions.

LLA, which became the largest bloc in the lower house in December, had backing from allies PRO, Unión Cívica Radical and the MID, but also rceived some last minute support from provincial parties.

Presidency Secretary Karina Milei — the president’s sister — celebrated the approval from one of the chamber’s balconies alongside Chief of Staff and presidential spokesman Manuel Adorni and Interior Minister Diego Santilli.

© Buenos Aires Herald