The government of Javier Milei presented this Thursday in Congress Work modernization projectan initiative that aims to reform the current working regime and will be discussed in committee from next week.
The President signed and submitted the proposal in a favorable political scenario and asked Parliament “Fast and responsible treatment” to promote structural change in the Argentine labor market.
The key points of labor reform that concern workers
The project aims to reduce litigation, update historical norms and promote the creation of formal employment in a context where the The private sector does not create jobs registered since 2011.
A sector analysis with differentiated effects
According to a report by consulting firm Empiria, the impact of the Labor Modernization Project will vary significantly between productive sectors.
According to the document in the medium and large industrial activities, “The combination of the FAL – Labor Assistance Fund –, the flexibility of working hours and holidays and the limitation of solidarity in subcontracting could lead to better predictability of labor costs and scope for restructuring shifts and production schedules.”.
The recently landed Javier Milei signed the text of the labor reform project that the government will send to Congress
Empiria warns that this eventual relief will depend in large part on this the ability of each branch to renegotiate their collective agreements and adapt the new regulations to the operational characteristics of the respective activity.
One of the sectors where a The most visible influence is the constructioncharacterized by high turnover and widespread use of subcontractors. “The reduction of solidarity in the contract chains increases the importance of the solvency of each individual subcontractor”says the report, which also highlights that the balance between business predictability and effective protection of workers will be a crucial point to consider.
In the retail and stationary service sectors – such as the catering and hospitality industry – the changes could lead to more predictability in costs and in the management of vacation and working days. However, Empiria warns that the real impact is being felt given the persistence of informality in some segments will depend on government oversight and the development of overall demand in the coming months.
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The report also highlights that recognition of a specific regime for independent platform workers could be possible “In many cases, consolidate the status of independence”. This, according to the consultant, reduces legal risks and potential costs of claims for damages for companies in the sector, but opens a new debate about the limits and scope of these working models.
A context that enables reforms
According to Empiria, the political scenario after the midterm elections – with a Congress more favorable to the ruling party and support from the United States and the IMF – presents a concrete opportunity to advance labor reform. de jure – of law –something that hasn’t happened in decades. The government is looking Capitalize this windowparticularly given one important fact: formal private employment has not grown since 2011.
The consulting firm recalls that the current legislation, the core of which dates back to 1974, ultimately promoted a “de facto reform” that was characterized by larger dimensions Informality and precarity. Today there are 21 million workers in the labor market: 6.3 million registered private employees, 3.4 million public employees, 5.7 million informal workers and 5.8 million self-employed people. In 2012, formal private employees accounted for 35% of the total; today they only make up 29%.
For Empiria, this development shows that under the current rigidity The adjustment is no longer based on the extent of employmentbut by salary and quality of work, with continued growth in informal and self-employment.
GZ
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