The center-right Coalición Cívica (CC) party will break away from the Hacemos Coalición Federal (HCF) alliance because of differences over labor reforms in the new omnibus bill, CC leader Elisa Carrió announced on Sunday night.

Carrió, a national deputy for Buenos Aires City, announced the rupture during an interview with television channel LN+.

She also said during the interview that she plans to oppose the capital amnesty proposed in the fiscal package, which is being debated alongside the omnibus bill, because it fails to protect against laundering money from corruption and the drug trade. She added that plans to boost investment through tax breaks for large companies, backed by Lower House President Martín Menem, gave a raw deal to small and medium-sized companies.

“What Milei finally chose, in his concession to pragmatism, was [union leader Hugo] Moyano’s CGT,” she said. “For that reason, with all our respect and affection for [HCF leader Miguel Ángel] Pichetto, on Tuesday we will leave the bloc. We will maintain our autonomy, because we couldn’t be with Moyano. But we have a good relationship. It was already known that this was simply an administrative group.”

The second version of President Javier Milei’s new omnibus bill, which is being debated in the Chamber of Deputies starting on Monday, contains a labor reform that has been watered down compared with the previous omnibus bill, which collapsed in Congress in February because of a lack of support.

These changes include easing penalties for workers who strike and organize picket lines.

Argentina’s trade union federation, the General Confederation of Labor (CGT, by its Spanish initials) has rejected the bill’s labor reforms, and the pared-down labor reforms are seen as a concession to the labor movement. The CGT called a general strike against the measures on January 24 and has called another for May 9, as well as calling on workers to mobilize on May 1.

Over the weekend, deputy and Hacemos Coalición Federal leader Miguel Ángel Pichetto said that his bloc would back the labor reforms contained in the second omnibus bill, describing them as a “significant contribution to the world of work, the normalization of a lot of work under the table, and the drive for people to enter the world of work” in an interview with Radio Rivadavia.

Coalición Cívica has six deputies and no senators. Pichetto’s party, Encuentro Republicano Federal, has two deputies and one senator. The parties formed Hacemos Coalición Federal in December, together with the Cambio Federal party.