Labor reform: police clash with protestors during senate debate

Updated 7 p.m. Senators continue debating the government’s labor reform bill in a session that began on Wednesday at 11 a.m.  A slew of lawmakers have signed up to speak amid heavy scrutiny, with unions protesting and major business sectors largely backing the initiative. A vote is not expected until early Thursday. Serious incidents erupted in the streets surrounding Congress, as demonstrators protesting the bill clashed with police. TV broadcasts showed police shooting tear gas canisters and using water cannons to disperse demonstrators. Protestors were seen throwing Molotov cocktails and stones at police. A Buenos Aires City police communiqué announced that at least 13 people had been arrested and an additional 40 were being held until they could be properly identified. According to the statement, those arrested “assaulted police officers and caused damages to public space.” Security Minister Alejandra Monteoliva warned that demonstrations must be peaceful and added that the security forces would intervene “in the event of any unusual incident.” And added in an X post: “We will not allow the usual violent elements to sow chaos and disorder.” You may also be interested in: Milei’s labor reform seems tailor-made for companies. Business leaders have doubts The labor reform bill When she took the floor, Bullrich said that the bill has been attempted to be passed since “the beginning of democracy” in an effort to “adapt labor regulations to balance a system that is unbalanced,” she said. Carlos Linarres, a Peronist senator, said that he, a businessman, should “vote for this law with both hands” if he were only looking at his pocket. “It’s all benefits for me. But how can I face my employees afterwards?” Prior to the beginning of the session, Bullrich said that the bill currently had the backing of 44 out of 72 senators, well above the required simple majority to pass (37 votes). If approved, the bill would then be sent to the lower house. The proposal’s stated intention is to reduce what it says are legal barriers that hinder job creation. Among other dispositions, the articles introduce more flexible working hours and changes to salaries and severance pay, as well as financial benefits for companies. One of the bill’s main goals is to discourage labor lawsuits and to simplify hiring in order to boost employment. This includes lowering taxes and financial controls for employers while also granting additional benefits to those who set their employees’ labor situation in order. Other changes include a dynamic salary, meaning income would be tied to productivity. There is also an article aimed at creating a national fund to cover severance payments, meaning employers would no longer have to pay them in full themselves. It also introduces the concept of “hours bank,” which means employees could “voluntarily” agree to extend their shifts. Instead of receiving overtime payment, workers would be able to use the extra hours to shorten future shifts. Workers could work up to 12-hour shifts under that system. The bill under debate, however, suffered numerous changes compared to the one approved in commission in December, as ruling party La Libertad Avanza (LLA) agreed to introduce modifications based on negotiations with the opposition, unions, business leaders, and governors in order to gain support. In total, 28 changes were introduced to the bill after the negotiations.  The main modification was the elimination of an article that lowered the percentage of income tax companies had to pay, while using provincial resources to make up for the missing percentage.  “We decided to postpone the debate on the income tax until we can build an integral fiscal reform bill,” Bullrich said in the press conference. Other important changes were made after negotiations with Argentina’s largest union federation, the General Confederation of Labor (CGT, by its Spanish initials). The CGT was initially planning a general strike on Wednesday but instead is carrying out a march. The changes introduced remove articles that would have reduced union power by taking away sources of funding, which are taken from the employees’ salaries through their employers. In addition, the changes made to the bill postpone the elimination of labor statutes of certain sectors, like the Journalist Statute, an instrument used since 1946 to protect the rights of press workers. If approved, the sector will have 180 days to incorporate the elements included in the statute into a labor agreement, known as convenio colectivo de trabajo. Articles that would eliminate the main sources of funding for the INCAA institute of arts and cinema and make it lose financial autonomy were modified, postponing the measure until 2028. Cover photo: Mariano Fuchila