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Milei clashes with Argentina’s powerful unions over labour reform

Rightwing leader’s latest bill overhauls the country’s rigid employment market

President Javier Milei is pushing to overhaul Argentina’s rigid labour market, igniting a clash with unions and wading into the country’s most divisive issue.

Workers’ rights are the heart of Peronism, the left-leaning movement that has dominated Argentina since the 1940s, making them particularly politically sensitive. The labour unions that helped found Peronism retain huge influence over working life and workers enjoy strong protection from dismissal.

Critics argue that the system, along with a heavy tax burden, has discouraged formal hiring. Almost half of Argentines work off the books, and the number of registered private-sector jobs has barely grown since 2011 despite the population growing by about 15 per cent.

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