Argentina’s Senate approved a sweeping labor reform package on Thursday, February 13, 2026, sparking debate over whether the changes will stimulate economic growth or further exploit workers. The legislation, championed by President Javier Milei, passed with 42 votes in favor and 30 against, clearing its first major hurdle in Congress.
The reforms aim to loosen Argentina’s rigid labor market, drawing comparisons to Germany’s “Hartz laws,” according to reports. Whereas proponents hope the changes will attract investment, critics have staged protests, raising concerns about worker protections.
A significant portion of Argentina’s workforce—over 40 percent—operates in the informal sector without social security benefits. The government argues the reforms are essential to broaden the tax base and foster sustainable economic growth. Despite an unemployment rate of “only” 7 percent, the lack of formal employment leaves many vulnerable and deprives the state of revenue.
Reduced Labor Protections
The proposed legislation would reduce protections against dismissal, lower severance payments, and limit the right to strike, according to Die Tageszeitung (taz). While a consensus exists on the need for labor reform—much of the current legislation dates back to the last century—disagreement remains over the specifics.
The plan includes measures to streamline hiring and firing processes, introduce a system for tracking overtime hours, and overhaul severance pay. Restrictions are similarly proposed for strikes in “essential services,” and automatic renewals of collective bargaining agreements would be eliminated. Continued salary payments during illness or accidents would be curtailed.
Cuba Faces Potential Collapse
The escalating energy crisis in Cuba is also drawing international attention. A U.S. Embargo on oil shipments to the island nation has left Cuba without fuel for refueling aircraft, signaling a dire situation. The crisis underscores the island’s vulnerability to external political pressures.
According to the Frankfurter Allgemeine Zeitung, the United States has drastically cut off Cuba’s oil supply. Venezuela, previously Cuba’s main provider, halted exports after a change in government in Caracas and subsequent U.S. Control over exports. Mexico, another key trading partner, also ceased shipments after threats of tariffs from former President Donald Trump. Hopes for assistance from other countries are dwindling.
The lack of resources is severely impacting Cuba’s economy, reducing overall performance by 30 to 50 percent. A significant emigration of young people is exacerbating the problem, leaving an aging population behind. The situation has led to widespread hunger, with reports indicating that 13 percent of Cubans—1.4 million people—are malnourished, and nearly 40 percent lack reliable access to sufficient, safe, and nutritious food.
Emergency Measures Implemented
In response to the crisis, the Cuban government announced emergency measures on Friday, February 13, 2026, to keep essential services running. These include restrictions on public transportation, a reduced work week for public administration, drastic cuts to bus, train, and ferry services, relocation of tourists from some hotels, and a 30-day suspension of in-person university classes. Havana officials described the approach as facing the “collapse with creative resistance.”
(mn/cp)
