By CIVICUS
Apr 13 2026 –
CIVICUS discusses recent regressive changes to Argentina’s labour laws with Facundo Merlán Rey, an activist with the Coordination Against Police and Institutional Repression (CORREPI), an organisation that defends workers’ rights and resists state repression.
Facundo Merlán Rey
Argentina has just passed the most significant changes to labour legislation in half a century. Driven by President Javier Milei following his victory in the October 2025 parliamentary election, the law profoundly changes the conditions for hiring and dismissing workers, extends the working day, restricts the right to strike and removes protections for workers in some occupations. The government says the measures will boost formal employment and investment, but trade unions and social organisations warn they erode decades of hard-won rights. The law has triggered four general strikes and numerous protests.
What does the new law change and why did the government decide to push it through?
Capitalising on its victory in last year’s legislative election, which gave it a majority in both parliamentary chambers, the government pushed through a labour law that introduced changes on several fronts simultaneously.
It increases the daily maximum of working hours from eight to 12, with a weekly cap of 48. Hours worked beyond this limit no longer need to be paid separately, but can be accumulated and exchanged for days off at a later date.
It also introduces the concept of ‘dynamic wage’, allowing part of an employee’s pay to be determined based on merit or individual productivity. The employer can decide this unilaterally with no need for a collective agreement. This would allow two people to be paid differently for doing the same work.
The law creates the Labour Assistance Fund, an account to which the employer contributes three per cent of a worker’s salary, of which between one and 2.5 percentage points come from the worker’s pay. If dismissed, the worker receives the amount accumulated in that fund. This is deeply humiliating. It makes the worker contribute to the financing of their dismissal. Given that these contributions previously went into the pension system, the effect will also be to weaken pensions.
The law restricts the right to strike by expanding the list of occupations deemed essential, which means they are required to maintain at least 75 per cent of their operations during a strike. Previously, this category included air traffic control, electricity, gas, healthcare and water. Now it also includes customs, education at all levels except university, immigration, ports and telecommunications. In practice, this means that in these fields a strike will have a much more limited impact.
Finally, the law repeals the special regimes that regulated working conditions in some trades and professions. Over the next six months, hairdressers, private drivers, radio and telegraph operators and travelling salespeople will lose these protections. The Journalists’ Statute will be abolished from 2027 onwards.
At CORREPI, we believe all these measures are unconstitutional, as they directly contravene article 14 of the constitution, which guarantees the right to work and the right to decent living conditions. The changes put employers in a position of almost absolute dominance in an employment relationship, leaving workers with no real scope to defend their rights.
How have trade unions and social organisations reacted?
The most militant groups highlighted the problems with the new law clearly, but the response from the organised labour movement has been insufficient.
Union leaders responded with a belated and low-profile campaign plan. They have long been criticised for preferring discreet agreements to open confrontation, and this time was no different. They negotiated behind the scenes and secured concessions to protect themselves. The law maintains employers’ contributions to trade union health schemes and the union dues paid by workers for two years. The rights of workers as a whole were sidelined.
What impact are the changes having?
Although the law is already in force, its full implementation faces obstacles, partly because it has internal consistency issues that hinder its practical application. When the government attempts to apply it in employment areas that still retain rights, it will likely face legal challenges, which will increase social unrest.
Even so, some of its effects are already being felt. Unemployment is rising slowly but steadily. Factory closures, driven by the opening up of imports and the greater ease of dismissal, are pushing more workers into informal employment and multiple jobs. The result is a fall in consumption and a level of strain with outcomes that are difficult to predict.
The consequences extend beyond the economic sphere. Increasingly demanding working conditions, combined with high inflation and rising household debt, are taking a toll on workers’ mental health. Regrettably, there is already a worrying rise in the suicide rate.
There’s also a consequence that is harder to measure: this reform erodes the collective identity of workers. When work is informal, individuals tend to solve their problems on their own, making it much harder to organise to demand better conditions. In working-class neighbourhoods, drug trafficking is becoming established as an alternative source of employment, generating situations of violence that largely go unnoticed. Unfortunately, everything points to an ever-deepening social breakdown.
What lessons does this experience hold for the rest of the region?
Regional experience shows it is very difficult to reverse this kind of change. In Brazil, President Lula da Silva came to power in 2022 promising to repeal the labour law passed in 2017 under Michel Temer’s government, similarly opposed by social organisations and trade unions. However, he failed to do so, and the framework Temer left remains in force. Once passed, these laws tend to remain in place regardless of who governs next.
That’s why what’s happening in Argentina should not be viewed as an isolated phenomenon. The reform appears to be part of a broader direction that regional politics is taking under the influence of the USA, one of the main drivers of these changes and a supporter of the governments implementing them.
The weakening of labour rights and collective organising is not a side effect; it is the objective being pursued. Dismantling workers’ ability to organise collectively facilitates the advance of extractive and financial interests and guarantees access to cheap labour. In that sense, Argentina offers a warning to the rest of the region.
CIVICUS interviews a wide range of civil society activists, experts and leaders to gather diverse perspectives on civil society action and current issues for publication on its CIVICUS Lens platform. The views expressed in interviews are the interviewees’ and do not necessarily reflect those of CIVICUS. Publication does not imply endorsement of interviewees or the organisations they represent.
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