The sequencing of transitions to democracy and to a market economy shaped the outcome of labor law reform and prospects for expanded labor rights in Argentina, Brazil, and Chile. Argentina and Brazil experienced democratic transitions before market economic reforms were consolidated in the 1990s. During the transition, unions obtained prolabor reforms and secured rights that were enshrined in labor law. In posttransition democratic governments, market reforms coincided with efforts to reverse earlier labor protections. Unable to block many harmful reforms, organized labor in Argentina and Brazil did conserve core interests linked to organizational survival and hence to future bargaining leverage. In Chile this sequence was reversed. Market economic policies and labor reform were consolidated under military dictatorship. During democratic transition, employers successfully resisted reforms that would expand labor rights. This produced a limited scope of organizational resources for Chilean unions and reduced prospects for future improvements.