ARGENTINA: Government And Unions Agree On Labor Reform Bill

(RTTNews) - The Argentinean government and the General Confederation of Labor (CGT) reached an agreement to send Congress a labor reform bill. The deal was cut after several rounds of talks involving the Labor Minister Jorge Triaca and union leaders.

As a result, the Mauricio Macri's administrations intends to send the bill to Congress as soon as possible, aiming at getting parliamentary approval before the end of the year.

Although there is still need to agree on details, the agreement provides for flexibility in hiring personnel, the links between the employer and the employee, and outsourcing.

The also provides for fine waivers and criminal immunity for one year, gives more power the employers to alter the guidelines of contracts, and limits the employees' access to litigation and compensatory fees. The bill would also allow the establishment of work cessation funds with contributions from workers, and reinstate internship programs.

In return, it extends some licenses, such as for parenthood, and creates others. The government also receded from excluding overtime hours and commissions from the compensation calculus. The so-called "comp time" would be extinguished and outsourcing would be forbidden in areas such as security, hygiene, IT and transportation.