The minister criticized the labor reform and said that the solution to strengthen the market is to increase controls
Labor and Employment Minister Luiz Marinho said on Tuesday (January 31, 2023) that the government wants to review labor standards, but has not committed to reviewing intermittent work. He said he will expand collective bargaining between workers and employees. He said he wanted to give more strength to the unions, but did not detail the measures.
He presented data from Caged (General Register of Employed and Unemployed). The country created 2.04 million formal jobs in 2022, a slowdown from 2021, when it was 2.78 million. Since the change of methodology, at the beginning of 2020, Brazil has recorded 4.6 million new jobs. In the first year of the covid-19 pandemic, 192,517 jobs were lost. to wade:
The Minister of Labor has criticized the labor reform, enacted in 2017, and other changes made to labor standards in the government of Jair Bolsonaro (PL). He said there was adisaster” in the government of Michel Temer (MDB), strengthened in the administration preceding that of Luiz Inácio Lula da Silva (PT). He said the impact was the “deregulationof the labor market.
“[Houve] A process of devaluation of the employment contract, of collective bargaining, of formalization of the employment relationship, of valorisation of work. In their place are intermittent contracts, precarious contracts, the total vulnerability of the labor market”. declared.
Marinho said that the federal government will return to talk about strengthening and resuming collective bargaining and the role of trade unions. “This will have an impact on the quality of work going forward. It’s not automatic. It doesn’t happen in 30 or 60 days […]but we are saying that we will try to strengthen the formalization and quality of work”, he said. Luiz Marinho was president of the ABC Metallurgists Union.
MARKET STRENGTHENING
The minister did not provide details on how it will strengthen the market: “Enhance collective bargaining and review any existing rules”. When asked if the intermittent work – which consists of contracting out services sporadically – will end, he said that “not necessarily”.
“We are not trying to end anything. When you strengthen yourself, you observe there at the end, you resume the supervision that ended. There are no inspections today. We will have to strengthen the role of inspections, the role of inspections, the role of regional workstations, which do not exist in Brazil today”.he has declared.
Marinho said he intends to restructure the activities of the Ministry of Labor and Employment. He claimed that the folder was dissolved during the Bolsonaro government.
“We are talking about the total vulnerability of the labor market, and we are talking about resuming the process of strengthening the quality of work. You don’t necessarily have to end intermittent work, but we’ll see what’s the rule and what’s a scam. It seems to me that there is a lot of fraud in the labor market. There are a lot of PJs [Pessoa Jurídica] that’s not PJ. there is a lot of MEI [microempreendedor individual] which is not MEI. And, therefore, we will have to observe to value and strengthen this formal job role”.he has declared.
LABOR UNIONS
The minister said that the market today is precarious because there is no supervision. He said the unions will have “time and voice” to help in the process of improving the work.
He argues that there has been a process of dismantling trade union organization in the country in the post-PT period. “We will strengthen the role of the trade union and strengthen the role of the inspection. It is not only the fight against slave and child labour, but also against precarious work. Not registered in portfolio. the fraud”, Marino said.
MARINHO: WORSE AFTER DILMA
Marinho said the stock of regular workers had increased from 22,561 in 2002 to 41,077 in 2014. The deadline coincides with the period of management of the PT in the federal executive. He said that, in 2015, former president Dilma Rousseff (PT) was no longer able to govern the country, which culminated in a decline in the number of jobs. He blamed former PSDB presidential candidate Aécio Neves (MG).
Hover the cursor to view the numbers in the graph below:
“We recall that 2015 was the 1st year of President Dilma’s 2nd term, when she was no longer able to govern. There was the process, from the re-election in 2014, the pact of devils of the National Congress, the bomb agendas, of Aécio Neves and Eduardo Cunha, and it had an impact on the global economic crisis, affecting the Brazilian economy, and Dilma without be able to control the reins of the Brazilian economy”She said.
The minister defended that all projects sent by the PT in 2014 were “torn apartby members of Congress.
According to the World Bank, the world grew by 2.7% in 2012, 2.8% in 2013, 3.1% in 2014, 3.1% in 2015 and 2.8% in 2016. In same period, GDP (Gross Domestic Product) in Brazil increased by 1.9%. in 2012, 3% in 2013 and 0.5% in 2014. It fell by 3.5% in 2016 and 3.3% in 2016. That is, in these 5 years, Brazil has outperformed the rest of the planet only in 2013.
According to economists, the recession was influenced by public policy errors that led to public finance defaults. Inflation was above 2 digits and BC (Central Bank) raised the base rate, the Selic, to 14.25% per annum. The federal government had a public accounts deficit from 2013 to 2021. The government of Michel Temer (MDB) adopted the spending ceiling to limit the growth of public spending, which caused the macroeconomic imbalance in Brazil. The PT wants to review the fiscal framework.
Marinho stated that, after the indictment by Dilma Rousseff, Brazil lost 2 million jobs from 2015 to 2019. There was a decline of 1.4 million from 2014 to 2015. The lowest annual level since Dilma’s departure was in 2017, when it totaled 38.308 million Brazilians. It rose to 39.055 million in 2019. As of 2020, the methodology has changed.
According to him, the growth of the labor market depends on the country’s GDP. He said it is necessary to have constant economic activity, which he believes the government is committed to improving performance.
BC MUST EXPLAIN, HE SAYS
The Minister of Labor and Employment was asked about the impact of the basic tariff, the Selic, on the labor market. Interest rates are at a contracting level, that is, limiting economic growth. The BC (Central Bank) was one of the first monetary authorities in the world to raise the rate to control inflation. The adjustment cycle started in 2021 and the level ended at 13.75% pa in 2022.
The indices have reached highs worldwide after the covid-19 pandemic and the war in Ukraine. Brazil ended 2022 with inflation above the 5% target. On January 10, 2023, he released a public letter explaining it. The rate was the seventh lowest in the G20.
Marinho said he doesn’t know if there have been any mistakes in monetary policy. Prior to that, he inquired about the review of the country’s foreign exchange flow last week.
The BC updated its outflow of financial resources in 2022 to $3.223 billion. Previously, it disclosed an inflow of $9.574 billion. The monetary authority has justified the existence of an error in the historical series. The incorrect information was released on January 4, 2023 and subsequently corrected on the 26th of the same month.
“The BC owes an explanation of what happened in the past, right? […] It was a mistake? This also applies to examining the role of agencies […] A little mistake? There was an error? I’m not saying anything. I put a question mark. The Central Bank needs to explain it better”said the Minister of Labour.
AMERICAN
Marinho said it is necessary to review the work of the agencies –“all of them”, In his opinion. He said that it is necessary to question the values of the financial market which, according to him, is the “lord of reason” And “said rule back and forth“. “The sacred rule has not been observed which is to take care of the health of a company that has 1,790 stores scattered throughout Brazil, which has 44,000 male and female workers, and which announces from one hour to the next that it has a problem : a gap of this magnitude and can default to the Brazilian state, to creditors, to those who were in good faith”he has declared.
The minister said he had not seen”nobody talkingof concern for workers’ jobs. He specifies that, in the event of fraud, he will call those responsible.
Without naming PwC, he said the consultancy was analyzing the financial statements of Americanas and did not find a fraud in progress. “We will have to look very carefully at all of this“, he said. He stated that he will organize a round table with the company’s worker representatives. He said the intention is to try to understand what caused the R $ 20 billion deficit. The company is in judicial recovery.
“I can’t say there was fraud, but it stinks, it does”, he has declared. “I keep wondering what the consultancy company was following, what the agency didn’t see, or saw and didn’t inform the Brazilian company of what was happening. Where am I the condescensions of life?”churches.
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