Argentina’s Labour Law Rollback: How Neoliberal Reforms Undermine Worker Protections and Democratic Rights

Indigenous and peasant movements in Latin America, such as Argentina’s Movimiento de Trabajadores Excluidos (MTE), have long framed labour rights as inseparable from territorial sovereignty and cultural autonomy. These groups advocate for 'buen vivir' principles, which prioritise communal well-being over GDP growth, directly challenging the commodification of labour. However, their perspectives are systematically excluded from policy debates dominated by neoliberal economists.

Argentina’s labour laws were historically shaped by the 1945 'Peronist social pact,' which institutionalised collective bargaining and social security. The 1976-1983 dictatorship systematically dismantled these protections, criminalising unions and assassinating leaders like the 'disappeared' workers of Ford and Mercedes-Benz plants. The current reforms echo this legacy, normalising precarity under the guise of 'modernisation.'

In Kerala, India, the 'Gulf Model' of labour migration created a precarious workforce, but local governments implemented welfare schemes like the 'Kudumbashree' microfinance program to mitigate exploitation. Similarly, Rwanda’s post-genocide labour policies prioritised cooperatives to rebuild social cohesion, reducing unemployment while maintaining worker protections. These cases demonstrate alternatives to deregulation.

Empirical studies show that labour deregulation correlates with increased income inequality and reduced productivity growth, as seen in the US and UK post-1980s. Research by the ILO (2023) finds that countries with strong collective bargaining have lower poverty rates and higher GDP per capita. The IMF’s own 2022 working paper acknowledges that austerity-driven labour reforms often backfire, increasing informality.

Argentine tango, born in working-class brothels and factories, embodies the resistance of marginalised bodies against oppression—a metaphor for labour struggles. Indigenous Andean cosmovisions, such as the Quechua concept of 'ayni' (reciprocal labour), frame work as a communal duty rather than a transaction. These cultural expressions challenge the individualistic, extractivist logic driving current reforms.

Scenario modelling by the New Economics Foundation (2025) suggests that Argentina’s labour reforms could increase precarity by 40% by 2030, exacerbating brain drain and social unrest. Alternative models, like universal basic services, could reduce poverty by 25% while maintaining fiscal sustainability. The 'Just Transition' framework, applied in Uruguay’s 2021 labour reforms, shows how green jobs can be paired with worker protections.

Informal workers, who make up 40% of Argentina’s labour force, are excluded from legal protections under the new law, deepening gender and racial disparities. Migrant workers, particularly from Bolivia and Paraguay, face deportation risks when organising, as seen in the 2023 crackdown on textile factories in Buenos Aires. Their exclusion from policy debates reflects a broader pattern of racial capitalism in Latin American labour markets.