Collective Bargaining and Union Activity: Aspects Modified by Labor Reform

Argentina's "Labor Modernization Law" is set to redefine key aspects of labor relations, impacting the validity of collective bargaining agreements (CCTs), union contributions, and the framework for resolving labor disputes. A notable effect is the expected renegotiation of many CCTs, which, despite being expired, currently remain in force under "ultraactivity" provisions. Negotiations are anticipated in 2027 to update their conditions.

The reform introduces specific changes to CCTs: upon expiration, only clauses related to individual work conditions and benefits will remain active. The executive branch's power to extend agreements is eliminated, making extensions solely dependent on mutual party agreement. Contribution caps are also established: employers will be limited to 0.5% of payroll for contributions to business associations specified in CCTs, while employees will face a 2% cap on contributions to unions, excluding membership dues and associated benefits.

Further modifications address union representation and negotiation structures. Parity committees now require members to belong to the same personal and territorial scope. For company or regional negotiations, representation will fall to first-degree or company unions with "personería gremial" (legal standing), while national federations or entities will handle activity-based negotiations. Agreements at a higher level cannot alter the content of lower-level agreements, though company agreements can establish articulation mechanisms or defer matters to higher levels. This reform notably enhances the role of company unions.

The law also mandates the convening of parties to expired agreements within one year of promulgation for renegotiation or ratification. It allows for the suspension of homologation if a CCT's application causes severe economic distortions. Regarding union life, assemblies and congresses must be conducted without disrupting normal operations, requiring prior employer authorization for time and location, during which employees will not receive wages. Actions like blocking establishments or impeding entry are classified as very serious offenses.