The Minister of Labor, Ronaldo Nogueira, ratified the government’s intention to services businessmen during a meeting developed at Sindeprestem in Sao Paulo.

“Brazil cannot wait anymore. There are over 64 million people today who are without an economic activity and almost 15 million who have nowhere to work. It is for these workers who need an employment opportunity that we shall modernize the labor legislation”, said Nogueira, on January 20^th during a meeting with businessmen from the services industry, held at Sindeprestem, Sao Paulo.

Considering there are over 12 million outsourced workers in Brazil, this is the first time a Minister of Labor visits a category union, consolidating the direct channel between the Ministry of Labor and Employment (MTE) and the entities of the services industry, particularly Sindeprestem and Fenaserhtt. Both organizations are leaded by Vander Morales, who confirmed his full support to the government’s initiative. “Our goal is to contribute and we are open to dialogue. We urgently need legislative security and an extension of the period of time for temporary hires. The business environment is improving and the signals are encouraging. This is the moment to debate such a polemic but necessary issue”, said Morales.

The Proposal

According to Minister Nogueira, the modernization of the labor market proposed by the government is based on three key points:

1. Consolidate rights – of those who are hired and of those who hire. “Contracts can no longer be subject to interpretations, particularly regarding the agreement between both parties” said the minister.
2. Legal certainty – fidelity contracts. “We have the responsibility and the obligation of providing a secure source of the labor and capital relationships”.
3. Creating employment opportunities for everybody. “Brazil is capable of generating 5 million part-time and temporary jobs. With legal certainty, I am confident that we will reach this goal”, said Nogueira, quoting the importance of the support provided by Sindeprestem.

Further support

Erminio Alves de Lima Neto, vice-president of the Brazilian entities of the services’ sector (CEBRASSE), the organizations of the Industry had never have a relevant participation in the decisions linked to employment policies. “Currently, we are the sector that employs the largest share of workers in Brazil.”

Representing the President of ABRH-SP, Theunis Marinho, Fernando Carvalho Lima, the director of Regional Integration of the entity, also defended the workforce modernization initiative. According to Carvalho Lima, the proposal aims to challenge current legislation, which is old-fashioned and needs to be updated. “This does not mean eliminating labor rights. It is about establishing a new balance, because the world has changed. There is a situation going on and we need to adapt legislation to the new reality”, he added.

The political consultant, Gaudencio Torquato, acknowledged the complexity of the issue and the urgent need to modernize labor legislation. “The timing is important, we must find ways to increase employability. As unemployment rises, it is mandatory to modernize labor. The issue has been strongly discussed in Brasilia”.

Minister Nogueira’s conclusion was that there is no greater indignity for a human being than not having two directions, one to live and one to work. “I know the reality of being unemployed, and as a minister of labor I have the mission of changing this scenery. We need to move forward and get to the Brazil of Order and Progress”, said Nogueira.

About FENASERHTT

The National Federation of Human Resource, Temporary Labor and Outsourcing Business Associations (FENASERHTT) is the official representative of the specialized services and temporary labor industry in Brazil. It includes five state unions – Sao Paulo, Santa Catarina, Espírito Santo, Bahía, Minas Gerais and Paraná. The industry represents around 32,000 companies that employ 2.5 million temporary and contracted workers in Brazil.