Brazil Senate Approves Shorter Workweek, Bolstering Lula Ahead of Election

Brazil's Senate has approved a constitutional amendment to reduce the nation's maximum workweek from 44 to 40 hours, a move championed by President Luiz Inácio Lula da Silva. The legislation, which mandates no salary reduction, is expected to be signed into law next week and is viewed as a significant boost to Lula's standing ahead of the upcoming presidential runoff election.

The amendment passed the Senate with a decisive vote of 75 to 1. The sole opposition came from Hamilton Mourão, former Vice President under Jair Bolsonaro. Flávio Bolsonaro, Lula's opponent in the runoff, who had previously opposed the initiative, voted in favor of the measure remotely. Analysts suggest that Bolsonaro's allies in the Senate ceased their obstruction of the popular measure to avoid negatively impacting his close race against Lula.

Under the amendment, businesses will have 14 months to implement the shorter workweek. This transition period was a critical point of negotiation, as many business leaders and lawmakers had initially advocated for a more gradual, 10-year implementation.

President Lula celebrated the decision, stating in a release, "Today is a day to celebrate a historic achievement for millions of workers." He emphasized the potential for increased personal time for rest, family, and well-being. Many senators chanted Lula's name following the vote.

Recent polling indicated widespread public support for the reduced workweek, despite reservations from some business owners who expressed concerns about rising living costs due to the new schedule. The Senate's approval of this measure follows a series of other actions taken by Lula's administration to consolidate support, including fuel tax cuts, the extension of subsidies, a pledge to forgive debts for small businesses, and increased payments for a university student welfare program.

Bolsonaro, who narrowly outpaced Lula in the first round of voting, had recently reversed his opposition to the shorter workweek. He had previously favored a more flexible hourly payment system and argued that the legislation was politically motivated. However, he reportedly told business owners that the incoming Congress could review the measure.

The push for a reduced workweek has gained momentum across Latin America. Neighboring countries such as Chile and Colombia have recently enacted legislation to shorten their workweeks, inspiring similar movements in Brazil. Mexico also approved a proposal to gradually reduce its workweek to 40 hours by 2030, while Chile implemented a 40-hour workweek in 2023. Argentina, under President Javier Milei, has moved in the opposite direction, potentially extending its 48-hour workweek.

The new Brazilian legislation applies to workers under the country's labor code, establishing a 40-hour weekly limit and two rest days without reducing pay. Over 37 million workers are expected to benefit from these changes. However, individuals in the shadow economy, such as freelancers and delivery drivers, will not be directly affected.