- Argentina has been thrust into political and economic turbulence as a sweeping labour reform introduced by President Javier Milei collided with powerful unions.
- Argentina’s largest union federation, the General Confederation of Labour (CGT), coordinated a 24-hour general strike involving transport workers, public servants, and private-sector employees, disrupting subway services, bus networks, and schools.
- Argentina’s labour reform fight reveals a stark national divide between Milei’s market-oriented agenda and entrenched labour interests, potentially testing the country’s political stability.
Argentina has been thrust into political and economic turbulence this week as a sweeping labour reform initiative introduced by President Javier Milei collided with powerful unions, culminating in a nationwide general strike that brought much of Buenos Aires and beyond to a halt. The standoff underscores deeply rooted tensions over the nation’s economic direction and the social costs embedded in Milei’s broader reform agenda.
On February 19, Argentina’s largest union federation, the General Confederation of Labour (CGT), coordinated a 24-hour general strike involving transport workers, public servants, and private sector employees, disrupting subways, bus networks, and schools. Aerolíneas Argentinas said it expected to cancel 255 flights at a loss of about $300 million. Business activity, banking, and education came nearly to a standstill in what unions framed as a defence of longstanding workers’ protections.
The strike was timed to coincide with a crucial debate in the Chamber of Deputies, where lawmakers were set to vote on a labour reform bill already approved by the Senate. The proposed legislation aims to modernise Argentina’s labour code by reducing severance pay costs, broadening employers’ ability to hire and fire, and allowing the standard workday to be extended from eight to twelve hours. It would also curb union powers, including placing limitations on the right to strike. The Milei administration has argued these measures are essential to attract foreign investment and formalise Argentina’s large informal workforce. At the same time, opponents portray the legislation as regressive and a violation of workers’ rights. In a 135-to-115 vote in Congress, the bill received the backing of his ruling coalition and centre-right allies, sending it back to the Senate for final approval after amendments. This legislative success, however narrow, underscores the bill’s growing alignment with Milei’s libertarian economic agenda.
The broader context of this conflict is Argentina’s fragile economy. Milei has expressed alignment with President Donald Trump and recently visited Washington to participate in an event associated with Trump’s initiatives. Trump has described Milei as an ally in the hemisphere, and the U.S. has extended financial backing aimed at stabilising Argentina’s finances and countering Chinese influence. Milei is also managing a pragmatic relationship with China, now Argentina’s top trading partner, with growing exports. This balancing act shows Buenos Aires navigating between Washington’s geopolitical preferences and Beijing’s commercial weight.
Argentina’s labour reform fight reveals a stark national divide between Milei’s market-oriented agenda and entrenched labour interests, potentially testing the country’s political stability.
Anshika Agrawal is a research scholar at the Centre for Russian and Central Asian Studies, Jawaharlal Nehru University, with a strong interest in current affairs, bilateral and multilateral relations, and public policy. Views expressed are the author’s own.
Hridbina Chatterjee 
Aayush Pal