BUENOS AIRES, Feb 20 (Reuters) - Argentina's lower house of Congress approved on Friday a contentious labor reform bill backed by libertarian President Javier Milei, despite a nationwide strike a day earlier by unions opposing the changes.
Lawmakers debated amendments until the early hours on Friday before passing the bill by 135-115 votes and sending itback to the Senate for a final vote.
Investors have been closely watching the legislation to see whether Milei has the power to continue implementing his free-market agenda.
The government says the bill, backed by the ruling party and its center‑right allies, will spur investment and boost formal employment.
"What good is an entire library of labor legislation if, at the end of the day, the system it establishes doesn’t serve to create jobs?" ruling party lawmaker Lisandro Almiron asked during the debate on the bill.
However, unions say the proposed overhaul threatens long‑standing worker protections, including the right to strike.
The powerful umbrella union CGT called a 24‑hour stoppage on Thursday by transport workers, public sector staff and bank employees. Argentina, one of the world's leading food exporters, also saw its grain exports affected on Wednesday and Thursday by a maritime workers' protest.
"There is not a single letter or a single line (in the bill) that favors workers at all, and when there is any kind of benefit, it is directed toward the business sectors," opposition Peronist lawmaker Sergio Palazzo said during the debate.
Among the last-minute changes was the removal of an article that reduced sickness-related benefits for employees.
The Senate is expected to pass the bill into law next week. President Milei intends to have the legislation approved by the time Congress begins its ordinary sessions on March 1.
(Reporting by Nicolas Misculin; Writing by Daina Beth Solomon; Editing by Clarence Fernandez, Andrei Khalip)
