Feb 12 • 05:27 UTC 🇧🇷 Brazil Folha (PT)

Milei manages to approve labor reform in the Senate after concessions

Brazil's Senate has approved labor reform proposed by President Javier Milei after extensive debate, amid protests and tensions in the streets.

After securing public support during the last legislative elections, President Javier Milei's government has successfully passed labor reform in the Senate, marking a significant step in his administration's agenda. The vote concluded with 42 in favor and 30 against, although the reform still requires approval from the Chamber of Deputies. Discussions began the previous morning and continued late into the night, reflecting the contentious nature of the legislation. Protests occurred in Buenos Aires, leading to violent clashes between police and demonstrators, indicating public dissent against the reforms.

The Justicialist bloc attempted to extend the debate to avoid another legislative defeat, with 19 of the 21 Kirchnerist senators participating in the discussions. Some contentious points in the proposal were modified, particularly the article that would have lowered the corporate income tax rate from 30% to 27%, which was eliminated in the final version of the reform. This shows the government's willingness to negotiate certain elements in order to gain broader support from the senators, showcasing the intricate balance of power within the legislative body.

The CGT (General Confederation of Labor) successfully negotiated key aspects to retain the union fund, emphasizing the ongoing influence of labor unions in the legislative process. As the reform progresses to the Chamber of Deputies, the implications of this labor reform could be far-reaching, potentially reshaping labor relations and economic policies in Argentina, as well as altering the political landscape as Milei continues to push for his agenda amidst public protests and opposition challenges.

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