From Populism to Neoliberalism: Labor Unions and Market Reforms in Latin America

In the late 1980s, populist labor parties, which had advanced protectionism and state intervention in the postwar period, implemented market-oriented reforms in Argentina, Mexico, and Venezuela. In all three countries, market reforms hurt their union allies. The interaction between allied unions and governing labor parties, however, varied across countries and across sectors within the same country. While some unions endorsed neoliberal reforms, others rejected them despite their long-term alliance with governing parties. While some unions obtained concessions, others failed to do so.