26 January, 2009
Thursday, 15 January, saw Brazil’s five major labour unions come together, pledging to follow a united path through the current economic crisis. The meeting held in Rio de Janeiro, Brazil’s centre for business and largest city, created the “Union Action Pact,” which outlines the labour movement’s determination to protect jobs during the economic downturn. The pact will now be presented to President Luiz Inacio Lula da Silva and to several state governors.
The newly unified force of the five unions represents tens of millions of workers throughout Brazil, the largest and most important of the Latin American economies. The weight given by these numbers to demands laid out in the accord is considerable. One important clause decided on by the unions is that loans and benefits from the Brazilian government to companies be linked to commitments by them not to cut jobs.
Other demands laid out in the accord are to do with the national economy. Organised labour asks the central bank to lower the national interest rate from its currant 13.75%, and also puts demands on private banks to correct the current imbalance between the interest they charge borrowers and the rates they pay for deposits.
The labour groups are asking Lula, himself a former union leader, to boost unemployment insurance and to increase the amount of money going to the national worker-training fund. They are planning a manifestation this Wednesday, 28 January, in São Paulo to coincide with a central bank meeting related to interest rates.
A current example of the problems facing Brazilian workers is at the powerful São Paulo state industrial federation, or FIESP. While asking workers to accept a 25% pay cut, FIESP is unwilling to offer a no-layoff pledge.