Argentina's lower house passes labor reform before final Senate vote

BUENOS AIRES, Feb 20 (Reuters) - The lower house of Argentina’s Congress approved on Friday a contentious labor reform bill backed by libertarian President Javier Milei, despite a nationwide strike by unions opposing the changes that had brought parts of the country to a halt.

Investors have been closely watching the legislation, passed by 135 votes in favor with 115 against, to see whether Milei has the power to continue implementing his free-market agenda.

The government says the bill, approved last week by the Senate with support from the ruling party and its center‑right allies, will spur investment and boost formal employment.

Lawmakers were debating modifications in the early hours on Friday before sending the bill back to the Senate for a final vote to become law. Among the changes was the removal of an article that reduced sickness-related benefits for employees.

"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.

In protest, the powerful CGT union called a 24‑hour stoppage on Thursday by transport workers, public sector staff and bank employees.