The state and the unions are the main institutions of corporate governance in Brazil’s emerging economy. The human-resource management policies of firms rely on changes in labor law and labor market regulations rather than on managerial models. The legal measures taken by the past two administrations, including profit-related pay and the hour bank, all aim at flexibility and labor market deregulation. The current reforms of Brazilian labor law apparently fit, in a contradictory way, long-standing banners of the "new unionism" such as decentralized negotiations and anticorporatist procedures. Neoliberal policies have disrupted old labor allegiances, leaving the unions more vulnerable than ever.