Union reform proposes rule against shell unions – 02/04/2023 – Panel

The project that proposes a reform in the Brazilian trade union system should be ready in June, with the expectation that it will be voted in Congress in the second semester. The text has been improved by the trade union centrals and by the Ministry of Labor since the beginning of February, when it was revealed by the Panel.

In its most recent version, it provides for a four-year mandate for union leaders, the right to oppose, transparency and the requirement that unions prove density in order for them to function.

Density is a measure to assess whether entities actually carry out union activity and takes into account the number of union members, participation in collective agreements and the size of the base they represent.

The currently proposed formula sums up representation (the entity’s participation in negotiations for conventions or collective agreements) and representativeness (number of union members), in a ratio of 80/20. Unions without density, as facades, would be deactivated.

The project also proposes the negotiation rate, defined in the assembly and paid to the unions by all workers covered by collective agreements, deducted from the payroll. The project will be discussed in the coming weeks with businessmen and the idea today is that it be sent as a bill by the Executive.

As the column showed, the proposal also involves the creation of a public agency for self-regulation of labor relations and the reinforcement of collective bargaining mechanisms.

This autonomous public agency, provisionally called the National Labor Council (or National Council for Labor Relations), would consist of two Chambers, one for workers and one for entrepreneurs, and a tripartite council, in addition to a technical board.

The understanding is that this entity could act in the mediation of conflicts, reducing the costs with the Justice and giving more agility to the resolution of impasses.

In addition, she would be responsible for monitoring the functioning of the union system, making sure that the entities are respecting criteria of transparency and density.

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