BUENOS AIRES, Argentina — Violent clashes erupted in downtown Buenos Aires on Wednesday as Argentina’s Senate debated a sweeping overhaul of the nation’s labor laws, a cornerstone of President Javier Milei’s ambitious economic reform agenda. Security forces deployed water cannons and rubber bullets against protesters, who responded by throwing rocks, petrol bombs, and bottles, leaving two people arrested for attacking police officers, according to Security Minister Alejandra Monteoliva.
The protests, organized by powerful trade unions, brought traffic to a standstill in the city center and underscored the deep-seated resistance to Milei’s proposed changes. The bill aims to significantly loosen labor regulations, a move proponents say is essential to stimulate job creation and attract foreign investment. However, opponents argue it will erode worker protections and exacerbate economic insecurity.
The proposed legislation would curtail the right to strike, extend probationary periods for new employees, reduce the influence of national trade federations in collective bargaining, and lower severance payments. Businesses contend these changes are necessary to overcome what they describe as a stifling regulatory environment that has hindered private sector growth for nearly two decades. They point to high payroll taxes and a complex system of severance rules as major obstacles to formal employment, with nearly half of all Argentine workers currently employed informally.
The General Confederation of Labour, Argentina’s largest trade-union grouping, condemned the bill as “austerity for the workers,” arguing it would dismantle crucial safeguards against unfair dismissal and leave employees vulnerable to economic shocks. The debate in the Senate was expected to continue late into the night, with a vote anticipated to determine whether the legislation will proceed to the lower house of Congress next month.
The confrontation comes as Milei seeks to implement a radical program of economic liberalization, following his election in December 2023. In December 2025, Argentina’s Congress approved the 2026 budget proposed by Milei, marking the first budget approved by legislators since he took office. The budget aims for a zero deficit through spending cuts. Milei’s party, La Libertad Avanza, gained ground in recent midterm elections, bolstering his prospects for pushing through further reforms to Argentina’s labor and tax systems.
However, Milei has faced increasing opposition from Congress. In October 2025, Argentina’s Congress voted to curb the president’s power to rule by decree, a significant setback for the libertarian leader who had issued over 70 decrees since taking office to advance his austerity program. The new regulations stipulate that a presidential decree can now be overturned by a single house of parliament, a change from the previous requirement of a majority in both houses.
The labor reform debate is unfolding against a backdrop of economic challenges and social unrest. Last week, thousands protested in Buenos Aires against Milei’s proposed labor reforms, prompting the president to promise “a lot more reforms.” The outcome of the Senate vote remains uncertain, and the legislation faces a potentially difficult path through the lower house of Congress.