The initiative prohibits strikes in essential public services such as health, safety, school lunchrooms, and water and energy supply. It also puts limits on work stoppages in education.
The protests come amid social upheaval across South America, as a wave of unrest over the past two months has battered governments in Chile, Bolivia and Ecuador.
Demonstrations have raged since presidential elections on October 20 that saw Morales gain an unconstitutional fourth term amid allegations of irregularities in the vote count.
Chilean President Sebastian Pinera on Saturday announced a major government reshuffle, a day after more than one million people took to the streets in a massive protest for economic and political change.
Thousands of students and workers from the five public universities of Costa Rica marched to Casa Presidencial on Tuesday to protest against restrictions on the use of those institutions' budgets.
