Brazil's Senate on Tuesday approved wide labour reforms to revive Latin America's biggest economy, a major boost for embattled President Michel Temer who is trying to pull the country out of its worst recession ever. The legislation, which comes as Brazil is battling unemployment of 13.3 percent, was passed 50-26. The lower house approved the bill in April and it is expected to go into force this week.
"I think we passed one of the most ambitious reforms of the last 30 years," Temer said after the vote. "This definitive approval of the bill is a victory for Brazil in the battle against unemployment and in the construction of a more competitive country." The new rules allow companies and workers to negotiate agreements on certain issues, end compulsory union dues and give firms more flexibility on work hours and vacations for employees.
The legislation, which prompted unions to stage a strike in April and organize days of protests, was rejected by 58 percent of Brazilians, according to a recent survey. Temer, who is battling for political survival after being charged with taking bribes, has said Brazil's economy faces a meltdown without severe fiscal discipline and belt tightening.