Eletrobras: electric sector workers support government – 05/11/2023 – Panel SA

Three labor representatives from the energy sector asked the STF (Federal Supreme Court) to join interested parties (amicus curiae) in the action of unconstitutionality in which the Lula government questions the privatization of Eletrobras.

In the request to the Supreme Court made this Thursday (11), CNTI (National Confederation of Workers in Industry), Stiu-DF (Union of Workers in Urban Industries of the Federal District) and Asef (Association of Furnas Employees) defend greater participation of the government on the board of directors of Eletrobras.

As Panel SA reported, last week, the Lula government asked the Supreme Court to suspend clauses in the Eletrobras privatization law so that the Union can vote with more than 10% of its shares in important company decisions.

Today, the Union owns 43% of the shares, but says that the lock of 10% of the votes established by law is a way of isolating the government in the company and benefiting minority shareholders.

To reinforce Lula’s request, labor associations cited as an example Enel, in Italy, and Engie, in France, which were privatized, but kept the governments as main shareholders – in both cases, the Italian and French governments own 23 % of shares. In these companies, the State remains the reference shareholder.

“The matter under discussion is of great relevance, not only for Eletrobrás, Furnas and other subsidiary companies and their workers, but for the whole country. The electricity sector is strategic for the security and development of Brazil, and the mitigation of voting power government, which holds 43% of the common shares of Eletrobrás, the largest energy producer in the country, will profoundly affect the functioning and future of the sector”, say the associations.

According to the three entities, it is important that the government has equal weight in the dialogue with shareholders, since Eletrobras is responsible for managing the basic structure of the Brazilian electrical system. They assess that any crisis in the company directly affects the national economy.

Minister Kassio Nunes Marques, the first nominee of former President Jair Bolsonaro (PL) to the Supreme Court, is the rapporteur for the action.

With Diego Felix

PRESENT LINK: Did you like this text? Subscriber can release five free hits of any link per day. Just click the blue F below.