What should happen to labor reform after the elections?

Almost five years after the approval of the labor reform, which made profound changes to the CLT (Consolidation of Labor Laws), the legislation is being discussed again with the proximity of the October elections.

Changes in legislation are part of the government programs of some of the main candidates for the presidency, and even with the advantage in the polls of former president Luiz Inácio Lula da Silva (PT), the largest unions in the country do not expect a repeal of the text or the return of the union tax — they only have a “reform of the reform”.

“We have been talking about revision, not repeal of the reform. What we defend — and we are talking about — is to do in Brazil what happened in Spain, a revision discussed by unions, government and businessmen”, says Miguel Torres, president of Força union

He emphasizes, among the points that were implemented and that would need to be revised, the strengthening of the participation of unions in the matter of the negotiated over the legislated. “The reduction of working hours, for example, cannot be negotiated with each worker”, he says, adding the need to review the rules of outsourcing and the intermittent contract (provision of service sporadically).

Trade unions do not claim tax return

Another sensitive point about the revision of the reform is the possible return of the union tax. The contribution was mandatorily paid by the worker once a year, in the month of March, corresponding to the remuneration of a day’s work. It was created to strengthen the union movement and was deducted from the payroll by employers. The 2017 labor change made the tax optional.

Data from the Ministry of Labor and Social Security indicate that there was a 90% drop with the approval of the reform in the collection of labor entities (unions, federations and centrals), from 2017 to 2018, from R$ 2.23 billion to R$ 202, 4 million.

The CUT (Central Única dos Trabalhadores) says that it has always been against the union tax, and that it has already defended the associative contribution.

For Torres, from Força, the return of the mandatory contribution is not a possibility, even in case of revision of the reform. “The tax will not return, we do not claim it and we will not. What has to be discussed is union financing, via collective agreements and approved in assemblies”, he says.

Torres points out that the union that does not make agreements and move in defense of workers does not deserve to be called a union. “We defend that the contribution is the reward for good work. We have been without the tax since 2017, it was an important revenue, but it supported some entities that only existed on paper.”

The president of UGT (General Union of Workers), Ricardo Patah, reinforces that some reform issues need to be agreed, but there is no expectation of resuming the mandatory contribution. “Financing can be resolved through an assembly. If the worker can decide to reduce his salary and adjust specific issues, why shouldn’t he decide if he wants to pay and how much he intends to contribute?”

The centrals defend that the ratification of the contract termination, however, returns to the presence of the unions, which was also banned by the reform and which could now be done virtually. “After it was no longer mandatory, many workers are being harmed”, says Torres.

Retirement and work are highlighted in candidate programs

The change in labor rules is the theme of the programs of the main candidates for the Presidency of the Republic in 2022. A recurring point is the inclusion of rights and increased security for application workers.

Former President Lula opened his program for discussion and receipt of proposals. The published text speaks of revision — and no longer revocation — of the reform, arguing that this should be the result of a broad discussion between employers’ and workers’ representatives.

At an event with unionists in April, Lula criticized Temer’s reform and said that no new changes would be made by force. “You who know me know that we are going to create a negotiating table.”

At the end of August, he returned to the subject, in an interview with a radio station in Pará, and said that it was important “to make an agreement with businessmen and unions, not to return to the previous legislation, but to create conditions for even app workers to have paid rest, vacations and insurance in case of illness and accidents”.

Meanwhile, President Jair Bolsonaro (PL) usually restricts his position to the opposition between labor rights and more jobs, while defending that he will work on reducing informality. The Minister of Economy, Paulo Guedes, is trying to get the Green and Yellow Card project back on board, which he considers a revolutionary form of contracting.

In speeches last month, the minister again criticized the social security system and the CLT, calling labor consolidation “fascist” and affirmed that the project, which eases labor charges and which has already been tried by the government, will be resumed in an eventual second Bolsonaro’s term. He also promises to expand the payroll tax exemption.

During an event with a group of businessmen at the end of August, the pedestrian candidate, Ciro Gomes, said that he intends to “retire” the CLT and put in place a new labor code that is more modern, without removing rights.

“The old CLT no longer understands the world of digital technologies, home office, telework, informality and applications. It can retire. However, the idea that we have to deregulate work is a deadly strategic mistake”, he said.

At a campaign event in Diadema (SP), senator Simone Tebet (MDB) said it was necessary to adjust the labor legislation to include app workers, discussing with them their most urgent demands. She has also talked about income insurance for informal or formal low-income people. Tebet, however, said he saw no need for further reform.

See below the main changes in the 2017 reform and what the candidates’ projects say.

> Remember the main changes of the 2017 renovation:

• Negotiations collective | Collective bargaining could establish terms that differ from the legislation, as long as they are favorable to the worker. With the reform, agreements between employee and company prevail over the law
• end of tax union | The reform abolished the mandatory contribution, one of the main sources of income for unions. The “tax” is no longer compulsory and the collection depends on the worker’s authorization
• Job intermittent | One of the novelties was the creation of intermittent work, in which the employee is paid by the hour and there is no minimum working day, demand mainly from bars and restaurants
• contracts temporary | The deadline for hiring has changed: before, it was 45 days and there was the possibility of extension for another 45 days; with the approval of the text, it was extended to 180 days, extendable for another 90
• cancellation of job | Employer and employee are now able to terminate the professional contract, without the need for the participation of a representative of the Labor Court or the union of the category in the approval
• Actions labor | The worker cannot miss hearings or contest terms of agreements between union and company. The Supreme Court reversed the reform rule that forced the worker to bear legal costs if he lost in court

> What the programs of the main presidential candidates say: