Brazil’s PSDB party could exit coalition after vote, paper says

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Senator Tasso Jereissati speaks with Governor of Sao Paulo, Geraldo Alckmin during a meeting of the PSDB in Brasilia

SAO PAULO (Reuters) – The Brazilian Social Democracy Party, President Michel Temer’s biggest ally, could depart his coalition once Congress has voted on a series of economic reforms in coming weeks, O Estado de S. Paulo reported on Monday, citing a senior party member.

São Paulo state Governor Geraldo Alckmin, a senior PSDB leader and a presidential hopeful, told Estado that there was no reason to participate in the government after reforms are voted through. Temer is spearheading a series of deficit-cutting reforms such as an overhaul of Brazil’s labor and pension codes.

His remarks come as other PSDB leaders meet later in the day to discuss the party’s stance on the Temer government, Estado said. Senators are expected to cast ballots on the labor code reform at a plenary vote on Tuesday.

Support for Temer has dwindled after Prosecutor-general Rodrigo Janot charged him late last month in connection to a massive corruption scandal. Temer has repeatedly denied any wrongdoing.

Efforts to contact Alckmin’s and Temer’s a media offices before working hours were unsucessful.

The labor reform bill, the first major overhaul of labor rules in seven decades, has already been approved by the lower house. Trade unions say Temer’s plan calls for more temporary work contracts and outsourcing, while weakening their power by eliminating mandatory union dues and other measures.

(Reporting by Guillermo Parra-Bernal; Editing by Toby Chopra)

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