Brazil Senate Committee Rejects Labor Bill in Blow to Temer
- Ten committee members vote against measure; 9 vote in favor
- Decision prompted local currency, stock market to sink
Michel Temer, president of Brazil, listens during a Bloomberg Television interview in New York on Sept. 19, 2016.
Photographer: Christopher Goodney/BloombergThis article is for subscribers only.
A Brazilian Senate committee rejected a government-sponsored bill aimed at loosening decades-old labor laws in a blow to the country’s already embattled President Michel Temer.
The Senate’s Social Affairs Committee on Tuesday rejected the proposal, which prioritizes direct negotiations between workers and employers over existing labor regulations, with ten votes against and nine in favor. The decision sent Brazil’s benchmark stock exchange lower as the real plunged to a one-month low before paring some of the losses.