Argentina advances labor reforms in energy and public sectors

The Argentine government is advancing labor reforms through various sectors. In the energy industry, the Private Oil and Gas Union of Río Negro, Neuquén, and La Pampa has reached a productivity agreement with the Chamber of Hydrocarbon Exploration and Production (CEPH) and the Chamber of Special Oil Operations Companies (CEOPE).

This agreement, part of the new Labor Modernization Law, establishes a Variable Incentive Program for Operational Results specifically for drilling activities in the Vaca Muerta basin. The program aims to improve productivity, operational efficiency, training, and safety through measurable and verifiable goals.

Simultaneously, the administration is planning a reform of the public employment sector. President Javier Milei indicated that Federico Sturzenegger is working on a reconsideration of the public career path to ensure performance has a greater impact on promotions and remuneration. While the government believes some changes can be implemented administratively, officials acknowledge that modifying the collective bargaining agreement is necessary to change rules regarding entry, evaluation, and mobility within the central public administration.