CAC, G6 and the Agroindustrial Council were some of the entities that celebrated the labor reform and highlighted its benefits
Compartir:
The approval of the labor modernization bill in the Chamber of Deputies caused explicit support from the main leaders of the business sector. They highlighted the benefits for registered employment, legal predictability, and investment incentives.
Various entities agreed that the reform represents a significant step toward reducing informality. It also facilitates new hiring and modernizes the regulatory framework for work in Argentina. Now, the focus is on the consideration that the Senate of the Nation must give it in order to turn it into law.
CAC highlighted predictability and cost reduction
The Argentine Chamber of Commerce and Services (CAC), chaired by Natalio Mario Grinman, publicly celebrated the preliminary approval. At the same time, it expressed the desire for swift consideration in the Upper House.
Natalio Mario Grinman, Presidente de la Cámara Argentina de Comercio y Servicios, junto a Javier y Karina Milei
Among the positive aspects, the entity highlighted the reduction of employer contributions for new hiring, which reduces labor costs and acts as a stimulus for the creation of formal employment.
It also highlighted the creation of the Labor Assistance Fund (FAL), a mechanism intended to cover the costs of potential terminations. According to the chamber, this tool reduces risks and uncertainty, generating an additional incentive to hire workers.
In its official statement, Grinman maintained: "The result is positive. Observations that we from the represented sector pointed out clearly and with sound arguments have been taken into account".
In addition, he emphasized that the regulation provides greater certainty by establishing in advance the costs associated with the termination of the employment relationship, eliminating judicial discretion that for years affected predictability.
Comunicado de la CAC en Instagram
Adaptation to the new world of work
CAC also valued the incorporation of tools in line with the new productive reality. Some examples are the splitting of vacation periods, the implementation of an hours bank, and the regulation of technological platforms.
However, Grinman stressed that the reform must be complemented by macroeconomic stability: "We know there is no magic and that a regulation by itself won't be enough. But it is undoubtedly a very important step in the right direction", he stated. In that regard, he highlighted the fiscal and monetary progress of recent years under President Javier Milei's administration.
Support from other entities
The so-called G6 —made up of the Association of Argentine Banks (ADEBA), the Buenos Aires Stock Exchange (BCBA), CAC, the Argentine Chamber of Construction (CAMARCO), the Argentine Rural Society (SRA), and the Argentine Industrial Union (UIA)— had already expressed its support before the parliamentary debate.
Los empresarios del G6 en un encuentro con el Secretario de Trabajo
In their joint message, the chambers emphasized the need to move toward a modern labor reform that promotes registered employment, competitiveness, and responsible agreements between employers and workers.
Meanwhile, the Argentine Agroindustrial Council also welcomed the approval and highlighted the chapter related to the Incentive Regime for Medium-Sized Investments (RIMI). It pointed out that this initiative incorporates key tools to encourage investment in the agricultural sector.
Among the valued points are incentives for agricultural irrigation, livestock farming, and the possibility of crediting VAT in certain industrial activities, measures aimed at expanding productive capacity.
Swift final approval
Una semana legislativa clave se define en el Senado de la Nación
Business entities agreed that labor modernization is an essential tool to boost the economy and reduce informality. They also expressed their willingness to participate in dialogue forums to consolidate a more competitive labor market.
Now, expectations are focused on the Senate moving quickly with its consideration and granting final approval. It has become clear that the reform is considered central for the private sector and for the consolidation of a framework of predictability and investment.
