Argentina's lower house of Congress approved in the early hours of Friday morning (February 20) 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 late into the night on Thursday and into Friday before passing the bill by 135-115 votes and sending it back 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. 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 (February 19) 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.

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.

DESCRIPCIÓN DE IMÁGENES

SHOWS: BUENOS AIRES, ARGENTINA (FEBRUARY 20, 2026) (DIPUTADOS TV ARGENTINA - Access all)

1. VARIOUS OF CHAMBER OF DEPUTIES IN SESSION DURING EARLY MORNING HOURS (IT BEGAN ON FEB.19 AND THIS SHOT IS AFTER MIDNIGHT)

2. GOVERNMENT DEPUTIES APPLAUDING AS PRESIDENTIAL SECRETARY GENERAL KARINA MILEI AND CABINET CHIEF MANUEL ADORNI ENTER THE CHAMBER

3. PRESIDENTIAL SECRETARY GENERAL KARINA MILEI AND CABINET CHIEF MANUEL ADORNI SMILING FROM BALCONY

4. (SOUNDBITE) (Spanish) OPPOSITION DEPUTY FROM UNION POR LA PATRIA (PERONIST PARTY), GERMAN MARTINEZ, SAYING:

"We will represent Argentines from each of the Argentine provinces, whether they voted for us or not. Whether they voted for deputies who entered through our list or not, and I assure you one thing, Mr. President, I assure you that when we take over the government of the nation again, this law will be immediately repealed."

5. CHAMBER OF DEPUTIES IN SESSION DURING EARLY MORNING

6. (SOUNDBITE) (Spanish) PRO PARTY DEPUTY, CRISTIAN RITONDO, SAYING:

"Let's vote, there are millions of Argentines, the majority of Argentines are waiting for us to pass this law that deepens the profound change that Javier Milei's government is making."

7. CHAMBER OF DEPUTIES PRESIDENT MARTIN MENEM LOOKING AT VOTING BOARD

8. VOTING BOARD SHOWING 135 VOTES IN FAVOR, 115 AGAINST, 0 ABSTENTIONS

9. GOVERNMENT DEPUTIES AND ALLIES APPLAUDING AND HUGGING

10. CHAMBER PRESIDENT MARTIN MENEM CONDUCTING REST OF SESSION

11. PRESIDENTIAL SECRETARY GENERAL KARINA MILEI AND CABINET CHIEF MANUEL ADORNI HUGGING AND CELEBRATING

12. CHAMBER OF DEPUTIES CONTINUING SESSION