BUENOS AIRES, Argentina (AP) 鈥� Argentine workers protested in the capital of Buenos Aires on Thursday, as annual May Day demonstrations in the South American nation coincided with smoldering anger over President Javier Milei’s of long-robust labor protections.
A day before , the General Confederation of Labor, or CGT, Argentina鈥檚 largest union group, marched to the government headquarters downtown to 鈥渄efend decent employment鈥� against Milei鈥檚 changes to the labor code, which since 1974 had guaranteed generous protections and rights for Argentine workers but also raised business costs that scared off foreign investors.
鈥淲e want to say to this government, enough is enough,” Octavio Arg眉ello, a leader of CGT, told the crowds of workers beating drums, waving banners and chanting against Milei. “Our patience has run out, Mr. President.鈥�
Past presidents for decades to liberalize the labor market but failed in the face of fierce resistance from Argentina’s powerful unions. Despite weeks of protests and a , Milei the labor-law package in February in a major victory for his .
Milei鈥檚 opponents are clinging to an challenging the law鈥檚 constitutionality. Union leaders plan to file a further petition after a court last week overturned an the law鈥檚 implementation at their request. The case is expected to go to the Supreme Court.
The labor overhaul has struck a nerve in a nation where workers鈥� unions helped found the left-leaning Peronist movement that here since the 1940s. The issue is particularly sensitive as Milei鈥檚 flagship drive to eliminate , wages lag behind prices and unemployment ticks up.
鈥淭he economy is not growing as strongly as the government thought it would,” said Marcelo J. Garc铆a, Americas director for the geopolitical risk consultancy Horizon Engage. “The majority of Argentines may feel that they鈥檙e not seeing the benefits of (Milei’s) economic program. And that’s Milei’s biggest political risk at the moment.”
The new law, aimed at helping businesses more easily hire and fire new workers, allows companies to increase workdays to 12 hours up from eight, extend probation periods during which employees can be dismissed without benefits and replace overtime with time off instead of extra pay.
鈥淭his is a government that doesn鈥檛 care about the people,鈥� said Sergio Aguirre, 51, a bus driver at the march. 鈥淐osts keep going up and our salaries stay the same. We survive on overtime pay. Now they want to take that away with the rest of our benefits.鈥�
The legislation also curtails workers鈥� right to strike, diminishes the power of national unions to determine salaries across entire industries and limits courts鈥� discretion on severance payouts, which critics say long ensnared employers in costly lawsuits and discouraged formal hiring. Nearly half of all Argentines work .
In the last few months Argentina鈥檚 construction and manufacturing sectors have shown .
Fundaci贸n Pro Tejer, a non-profit organization representing textile manufacturers, reported this week that Argentina鈥檚 textile production for the first two months of the year registered a nearly 30% drop year-on-year. Seven out of every 10 sewing machines now sit idle in the country鈥檚 factories, it says.
The layoff notices are piling up. Argentina鈥檚 formal labor market has lost roughly 200,000 jobs since Milei took office, according to the Ministry of Human Capital, and unemployment in the last quarter of 2025 rose over a percentage point compared to the same time the year before, to 7.5% 鈥� a rate that鈥檚 still relatively low because of Argentina鈥檚 massive share of informal workers.
Milei, who came to power in on a tide of public disenchantment with the budget-busting populism of his , has dismissed reports of economic challenges as 鈥渁bsurdities spread by the media.鈥�
鈥淲e receive international recognition for our achievements,鈥� he told an economic conference late Wednesday. 鈥淏ut as the saying goes, 鈥楴o one is a prophet in his own land.鈥欌��
Thursday鈥檚 march offered an indication of what may lie ahead as the president’s promises of radical change run up against economic misery.
鈥淲e’ll stay in the street until the government changes or backtracks,” said 47-year-old Manuel Correa, who works at a textile factory on the outskirts of Buenos Aires that slashed its workforce in the last two years by 58%, or 350 employees. 鈥淲e don’t have an alternative.鈥�
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