Argentina Senate approves labor reform amid protests
The government secured a broad victory, 42-30. The bill will now move to the Chamber of Deputies for debate. The ruling coalition aims to bring the initiative to a vote before Feb. 27, Perfil reported.
Once the session concluded, the Office of the President released a statement on X describing the Labor Modernization Bill as "a structural reform aimed at updating a system that for decades expelled millions of Argentines from formal employment and hindered the creation of registered jobs in our country."
The initiative is considered crucial to Milei's reform agenda, which seeks to shift Argentina's heavily regulated economy toward a free-market model.
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The labor reform proposes sweeping changes to labor relations, with the stated goal of modernizing the job market, encouraging investment and reducing informality, local newspaper La Nación reported.
According to various reports, under-the-table labor in Argentina involves more than 40% of workers -- nearly 9 million people -- that reached 43.2% in the third quarter of 2025. The phenomenon is concentrated in sectors such as domestic service and construction. It is higher among young people, at 63%, and among women, generating greater levels of working poverty.
Among the central points is flexibility in hiring and dismissal conditions, changes to the calculation of severance pay and creation of specific employer-funded funds to cover future labor compensation.
These have been among the most controversial aspects of the reform, as they would remove the strong protections the country has offered for decades against unjust dismissal, which until now have allowed courts to grant substantial compensation in wrongful termination lawsuits.
The bill also modifies aspects of the workday, enabling schedules of up to 12 hours per day with compensation, adjustments to vacation rules and new forms of hiring, including part-time work and jobs for digital platforms.
In addition, the reform establishes limitations on the right to strike in activities considered essential and strengthens the priority of company-level labor agreements over sector-wide collective bargaining agreements.
At the same time, it incorporates tax incentives to promote employment formalization, reforms to the labor courts aimed at reducing litigation and tax benefits for productive investments.
While the government argues that these measures are intended to energize the economy and reduce informality, labor unions and opposition sectors warn that they could imply a loss of labor rights and have an impact on the financing of the pension system.
The vote occurred in a climate of high tension in the vicinity of Congress in Buenos Aires, Infobae reported, with demonstrations and clashes between groups of protesters and security forces lasting several hours.
The protests, mainly called by unions linked to Peronism that describe the initiative as "enslaving," led to incidents that included the use of tear gas and rubber bullets by police.
Opponents of the measure say the reform includes what they describe as a worsening of rights related to vacations, leave and sick days, as well as an increase in working hours.
They also argue that it targets the country's long history of labor struggle, as it limits union rights and the right to strike.
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U.S. warns Peru as court allows China to run port with less oversight
"We are concerned by recent reports indicating Peru may be unable to oversee Chancay, one of its most important ports, under the jurisdiction of predatory Chinese owners," the State Department's Bureau of Western Hemisphere Affairs said in a statement posted on X.
The publication underscored "Peru's sovereign right to supervise critical infrastructure in its own territory" and questioned the origin of investment in the megaport located north of Lima.
"Let this serve as a warning to the region and the world: cheap Chinese money costs sovereignty," the U.S. authority said.
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In recent years, Beijing has expanded its presence in strategic sectors, such as infrastructure, energy and technology, across Latin America -- a trend that has drawn concern among U.S. policymakers.
Chancay, opened in 2024, aims to become a key logistics hub linking South America with Asia. The project has been presented as a milestone for Peruvian trade and part of China's growing footprint in regional port infrastructure.
The State Department's statement followed a ruling by a Peruvian court that limited the authority of the Organismo Supervisor de la Inversión en Infraestructura de Transporte de Uso Público, known as Ositran, the national transport infrastructure regulator, over the Chancay terminal, according to local outlet RPP Noticias.
The decision upheld an injunction awarded to Cosco Shipping Ports, the Chinese state-owned majority shareholder in the port. The company argued that Chancay was fully financed with private capital, operates without a state concession contract and functions under an administrative authorization granted by Peru's National Port Authority.
The ruling ordered Ositran to refrain from regulating, supervising, auditing or sanctioning activities at the port. It said subjecting the terminal to that regulatory framework would violate the claimant company's constitutional rights to property, free enterprise and legal certainty, according to newspaper La República.
The court also said that public use is a functional characteristic of port services, but does not automatically trigger the legal framework applied to state-concession ports.
In practice, the decision means the regulator cannot intervene directly in terminal operations or impose administrative controls. However, the ruling does not eliminate all state oversight.
Instead, supervisory responsibilities would be redistributed among various Peruvian regulatory bodies, with Ositran excluded from comprehensive regulation except in limited circumstances.
Ositran President Verónica Zambrano said the agency will appeal the ruling, arguing the company may seek to avoid Peruvian regulations.
"They are a public-use company providing services to the public. That condition creates legal consequences, including oversight by Ositran, because we supervise public transport service providers," Zambrano told news channel Canal N.
She added Peru's National Port Law defines a port administrator as an operator of public-use transport infrastructure and said this applies to Cosco Shipping.
Separately, Peru's Cabinet Office issued a statement on X regarding the judicial process involving Cosco Shipping Ports Chancay Peru S.A. Authorities said they will defend private investment while respecting Peru's regulatory framework.
Ministers added that if conditions outlined in the ruling affect Ositran's supervisory role, the government will use legal remedies available under existing law.
As part of the National Security Strategy promoted by President Donald Trump's administration, the U.S. president has called a summit for March 7 in Miami with several Latin American leaders considered strategic allies.
The meeting aims to consolidate a regional bloc aligned with Washington amid growing Chinese investment, trade and diplomatic influence in Latin America, Infobae reported.
Among the invited leaders are Argentine President Javier Milei, El Salvador's Nayib Bukele, Paraguay's Santiago Peña, Ecuador's Daniel Noboa, Bolivia's Rodrigo Paz and Honduras' Tito Asfura.
In addition to economic issues, the agenda includes coordination on security matters, particularly the fight against drug trafficking and the management of migration flows.
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