UNIONS slammed the labour reforms of far-right Argentinian President Javier Milei’s government on Wednesday.

IndustriALL, a global union body which represents industrial sectors such automotive, aerospace, energy and textiles, said the changes passed in June favour employers and roll back hard-won workers’ rights. 

Unions in Argentina have campaigned against the new law in recent months, warning it will affect workers in all sectors of society. 

The regulations introduce severance funds to replace a system that had been established under previous legislation and negotiated through collective bargaining agreements. 

The government says this will “address the high uncertainty and costs associated with dismissal and severance pay in the Argentine Republic … provide greater stability in labour relations” and “promote business competitiveness and stable employment.”

But Argentina’s union federation CTA has condemned the reform. It says since the new system can replace any related compensation, it could be used in almost all types of dismissals, which could lead to the reform being ruled unconstitutional.

The CTA also said the new system can be applied to labour relations that began before the system’s entry into force. 

It also opposes the administration of mutual severance funds, which are run for profit by financial institutions. It argues this provides workers with no guarantees in the event that the funds are liquidated for financial or any other external reasons.

Unions also slammed the regulations for reinforcing the category of “independent workers,” who are able to work with up to three other independent “collaborators” without a formal employment relationship. Unions say this as a way of concealing employment relations to avoid having to pay the related compensation.

IndustriALL deputy regional secretary Cristian Alejandro Valerio said: “All workers in Argentina must stand united against the onslaught of the Milei government and its local and international corporate sponsors.”