Labor reform: The government moves forward with its plan, and tensions with the CGT grow over union privileges.

The May Council will meet this Monday with a focus on the changes that Javier Milei 's government is seeking to implement as a possible labor reform . The CGT is participating in the forum, but already anticipates resistance to a possible reactivation of points of Decree 70, blocked by the courts, that directly affected the privileges of unionism. Within the Cabinet itself, there are opposing positions.

Labor reform is one of the ruling party's strategic priorities for the remainder of the year. The President has already announced that he will advance it in depth after the October 26 elections, although the government is working to ensure that prior consensus begins to develop as soon as possible . Within this framework, the May Council is once again bringing together officials, business leaders, and union members to outline a concrete agenda.

Among the issues causing concern for the CGT are the elimination of solidarity contributions, the end of ultra-activity in collective bargaining agreements, and the decentralization of labor negotiations . These proposals, originally included in Decree 70, were suspended by the courts but could return to legislative discussion with new formats.

Behind this hard line is the Minister of Deregulation and State Transformation, Federico Sturzenegger , who authored Decree 340, which regulates the right to strike. His stance puts him at odds with the more dialogue-oriented sectors of the ruling party, such as Guillermo Francos , Chief of Staff, and presidential advisor Santiago Caputo , who maintain regular contact with some union leaders.

President Milei is confident that a landslide victory in the elections will consolidate his structural reform plan. Within this framework, the Cabinet is debating how to move forward without completely breaking off dialogue with business and union sectors. Some officials, such as Luis Caputo and Karina Milei , support a more assertive approach, while others are committed to reaching minimal agreements to avoid open conflict.

From the CGT, the message is ambiguous. While some sectors reject any modification to the current labor regime, others, such as the one led by Gerardo Martínez (UOCRA), admit that certain aspects could be modernized if collective bargaining channels are respected.

One of the most sensitive issues for union leaders is the future of solidarity contributions, a key source of funding. Decree 70 proposed that these contributions be made only with the explicit consent of workers, which effectively weakened union funds. Although this clause was removed from the Basic Law due to opposition pressure, fears of its reinstatement remain.

Martínez himself acknowledged that there are no concrete definitions yet, but warned that the government is campaigning and that some proposals could reappear as part of the electoral discourse. However, he also emphasized that there is a willingness to discuss a labor agenda if it is framed within a plan that prioritizes production, employment, and investment.

In practice, the final content of the labor reform will depend on the outcome of the elections. The conclusions of the May Council will not be available until December, when the new legislators take office. If the ruling party achieves overwhelming support at the polls, the path will be paved to move forward with the reforms that are currently generating resistance.

Meanwhile, the ruling party is acting pragmatically: it listens, negotiates, and remains firm in its commitment to modernizing a labor system that is half a century behind. For now, the CGT is playing a double game: participating in the Council, but also seeking to protect itself from what it sees as an attempt to weaken its structural power.