A key congressman on Wednesday unveiled a compromise plan for sweeping reforms to Brazil’s bankrupt retirement system. Congressman Arthur Maia presented his version of the plan to fellow members of a special Chamber of Deputies committee dealing with pension reform. Maia worked out the plan in conjunction with congressional leaders and members of the administration of President Michel Temer. The plan is less draconian in setting retirement limits than the original Temer administration proposal. The changes came after intense lobbying by citizens groups, opposition political parties and labor unions. The compromise plan reduces the standard retirement for women to 62 from the 65 originally proposed by the government. It creates more liberal retirement rules for certain professions such as teachers and po lice and it loosens some of the rules suggested by Temer for a transition period to the new system. Finance Minister Henrique Meirelles said the compromise version would reduce the savings estimated under the original plan by about 20%. However, he endorsed the compromise, saying the changes were needed in order to assure congressional passage. The administration proposed the sweeping reform as a way to rein in out-of-control government spending while saving the system from total bankruptcy over the long term. A committee vote on the plan is expected by early May.
Link to government news agency release
Week of April 14, 2017
Brazil’s president signs labor outsourcing law
Brazilian President Michel Temer has signed a bill allowing for broader use of outsourced labor by private companies and government agencies, the government’s official news agency said over the weekend. The bill was passed by Congress in March following weeks of debate and controversy. Labor unions opposed the bill, saying it will undermine worker rights. Proponents say the bill protects constitutionally guaranteed rights while, at the same time, expanding the labor market. Temer signed the bill while using his line-item veto power to remove three minor provisions. The bill allows companies and government agencies to contract outside labor for virtually any activity, including so-called “core” manufacturing and service operations. & nbsp;
Link to government news agency release.
Week of March 31, 2017
Brazil’s Congress on Wednesday night completed action on sweeping legislation that allows for outsourcing of virtually any activity by private companies and even government agencies. The Chamber of Deputies voted 231-88 in favor of the bill, which was originally introduced in 1998 and passed by the Senate in 2002. Because of the long gap between Senate and Chamber consideration of the bill, some opposition leaders have said they may challenge the legislation in the courts. Nevertheless, Wednesday’s Chamber of Deputies vote represents a major victory for President Michel Temer and his modernization agenda. Temer is expected to sign the bill in the coming days. The legislation allows companies to hire outsourced workers for virtually any task, even so-called “core” operations in areas such as manufacturing, mining and services. Proponents say the legislation will give companies more flexibility in their use of labor, cutting costs and making Brazilian products and services more competitive.
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