If you’ve been watching the news out of Buenos Aires lately, you know things are chaotic. Honestly, "chaotic" might be an understatement. The Argentina Secretariat of Labor—which used to be a full-blown Ministry until Javier Milei took a chainsaw to the federal budget—is currently the epicenter of a massive national experiment. It isn't just another boring government office anymore. It’s the place where the "Base Bases" law meets the reality of a 200% inflation rate.
People often ask if the Secretariat still has any real power now that it’s tucked under the Ministry of Human Capital. Short answer? Yes. But the way it functions has flipped on its head.
The Massive Downgrade (or "Optimization") of the Argentina Secretariat of Labor
For decades, the Ministry of Labor was a titan in Argentine politics. It was the "house of the workers," a place where powerful union leaders (the sindicalistas) would sit down with government officials to dictate the country’s economic pace. When Milei took office in December 2023, he basically demoted the whole operation. It became the Secretariat of Labor, Employment, and Social Security. It now reports to Sandra Pettovello, the Minister of Human Capital.
This wasn't just a name change. It was a statement. By stripping it of "Ministry" status, the government signaled that labor is now viewed as a component of "human capital" rather than a standalone political power block. If you’re a business owner in Argentina, this is huge. It means the focus has shifted from "protecting the job at all costs" to "making it easier to hire (and fire) without going bankrupt."
Who is actually running the show?
The leadership at the Argentina Secretariat of Labor has been a bit of a revolving door. First, you had Omar Yasín. He got fired on live television—literally—after a scandal involving a presidential salary hike that Milei blamed on a "clerical error." Then came Julio Cordero.
Cordero is an interesting guy. Before joining the government, he was a lawyer for the Techint Group, one of the biggest industrial conglomerates in the country. He’s also been a key figure in the UIA (Argentine Industrial Union). When you put a corporate lawyer in charge of the Labor Secretariat, you know exactly what the goal is: deregulation. He’s there to dismantle what the current administration calls the "labor litigation industry."
Why the "Labor Litigation Industry" is Dying
In Argentina, there’s this concept called industria del juicio. Basically, it refers to the idea that many lawyers and employees use the country's complex labor laws to file massive lawsuits that can sink a small business. We’re talking about fines that multiply the original severance pay by four or five times because of a single missing document or a late registration.
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The Argentina Secretariat of Labor is now the primary architect of the "Ley Bases" labor reform. This law tries to kill those "punitive" fines.
Here is what is actually changing on the ground:
- Trial periods for new employees are being extended. It used to be three months. Now, depending on the size of the company, it can be six, eight, or even twelve months.
- The "Severance Fund" model. Inspired by the construction industry (UOCRA), this allows companies and unions to agree on a private insurance fund for dismissals, so the employer doesn't get hit with a massive, unexpected lump sum payment.
- Independent workers. This is controversial. The Secretariat is pushing a rule where an independent professional can have up to three "collaborators" without them being considered formal employees. Critics say this is just "hidden employment," but the government argues it's the only way to get the informal economy moving.
The "Paritarias" Problem: Can the Secretariat Stop Inflation?
Usually, the Argentina Secretariat of Labor acts as the referee in wage negotiations, known as paritarias.
Historically, the government would sit between the unions and the companies and "homologate" (officially approve) the raises. If the Secretariat doesn't homologate the deal, it’s not legally binding. Under the current administration, the Secretariat has been accused of "sitting on" these agreements. Why? Because if a union wins a 40% raise but the government wants to keep inflation expectations at 10%, the Secretariat simply refuses to sign the paper.
It’s a brutal game of chicken.
Look at the truckers' union (Camioneros), led by the Moyano family. They had a massive standoff with the Secretariat earlier in 2024 because the government refused to validate their pay hike. The Secretariat’s logic was that the raise was "excessive" and would fuel the wage-price spiral. It’s a complete departure from the past, where the Secretariat's job was basically to keep the unions happy. Now, their job is to keep the macroeconomy stable, even if it means picking a fight with the most powerful men in the country.
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What Most People Get Wrong About Informal Labor
You might hear that Argentina has a "strong" labor market because of its strict laws. That’s a myth. Honestly, nearly half of the Argentine workforce is "en negro"—informal. They have no pension, no healthcare, and no legal protection.
The Argentina Secretariat of Labor is trying to fix this through a "Labor Amnesty." They are basically telling business owners: "Register your workers now, and we will forgive all the past fines and years of unpaid social security contributions." It’s a 'get out of jail free' card. Whether it works depends on whether business owners trust that the next government won't just reverse everything in four years. In Argentina, trust is a rare currency.
The Role of the "Secretaría de Trabajo" in 2026 and Beyond
As we move deeper into the Milei presidency, the Secretariat is shifting its focus toward "Employment Centers." They want to move away from "Planeros" (people receiving social welfare) and toward "Empleabilidad" (employability).
They’ve launched programs like "Volver al Trabajo" (Return to Work). The idea is to strip the middleman—the social movements—out of the equation. In the past, if you wanted a government check, you often had to go through a "leader" in a local neighborhood organization. The Argentina Secretariat of Labor is now trying to digitalize this, paying the worker directly and requiring them to take job training courses.
It sounds good on paper. In practice? The Secretariat is struggling with a massive digital divide and an economy that is still in a deep recession, making it hard to find jobs to actually train for.
Practical Steps if You are Dealing with the Secretariat
If you’re an expat, a business owner, or someone looking to work in Argentina, you need to understand the current bureaucracy of the Argentina Secretariat of Labor.
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1. Check the "Ventanilla Única"
Everything is moving to the GDE (Electronic Document Management) system. Don't expect to walk into an office and hand someone a folder. You need to be registered in the "Trámites a Distancia" (TAD) platform.
2. Audit your "Cargas Sociales"
With the new amnesty rules, now is the time to clean up your payroll. If you have "informal" employees, the window to legalize them without crippling fines is open, but it won't stay open forever.
3. Watch the "SMVM"
The Salario Mínimo, Vital y Móvil (Minimum Wage) is set by a council that meets at the Secretariat. This number is the baseline for everything—from the "Potenciar Trabajo" plans to the salary brackets for income tax. It usually updates every few months because of the high inflation.
The Reality Check
Is the Argentina Secretariat of Labor actually helping? It depends on who you ask. If you're a union boss, they are the villains trying to destroy a century of labor rights. If you're a tech startup founder in Palermo, they are finally bringing Argentina into the 21st century by making the rules less insane.
The truth is somewhere in the middle. The Secretariat is currently understaffed and facing dozens of lawsuits from fired government workers. It’s trying to implement a 180-degree turn in policy with a fraction of the budget it used to have.
The next 12 months will be the real test. As the "Ley Bases" starts to take effect, we will see if the reduction in labor lawsuits actually leads to new jobs, or if it just leads to more precarious work conditions.
If you are navigating this, keep a close eye on the "Boletín Oficial." In Argentina, the rules change while you're sleeping. The Secretariat's resolutions are the only thing that matters when the law is as fluid as it is right now.
Actionable Next Steps for Business Owners
If you're managing a team in Argentina, your first priority is a legal audit. Contact a labor lawyer who specializes in the "Ley Bases" reforms to see how your current contracts can be migrated to the new "Severance Fund" model if your industry's union has signed on. Secondly, ensure your TAD (Trámites a Distancia) credentials are up to date, as the Secretariat has moved almost all homologation and dispute resolution to this digital portal. Finally, monitor the monthly updates on the "Minimum Vital and Mobile Wage" (SMVM) through the official government portal, as this affects the calculation of various mandatory insurance premiums and tax thresholds.