Brazil’s Congress on Wednesday night completed action on sweeping legislation that allows for outsourcing of virtually any activity by private companies and even government agencies. The Chamber of Deputies voted 231-88 in favor of the bill, which was originally introduced in 1998 and passed by the Senate in 2002. Because of the long gap between Senate and Chamber consideration of the bill, some opposition leaders have said they may challenge the legislation in the courts. Nevertheless, Wednesday’s Chamber of Deputies vote represents a major victory for President Michel Temer and his modernization agenda. Temer is expected to sign the bill in the coming days. The legislation allows companies to hire outsourced workers for virtually any task, even so-called “core” operations in areas such as manufacturing, mining and services. Proponents say the legislation will give companies more flexibility in their use of labor, cutting costs and making Brazilian products and services more competitive.
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