Companies, workers sign agreements to reduce working hours, wages
In the midst of the economic crisis generated by the spread of the novel coronavirus, companies and workers' unions have signed agreements to alter collective bargaining agreements and cut working hours and wages. The measure has already been adopted by workers in the mechanical and metallurgical industries of Blumenau (Santa Catarina) and construction and bar and restaurant workers in Rio de Janeiro.
In all cases, reduction both in working hours and wages is of 25% and considers the minimum wage as established in article 503 of the Consolidation of Labor Laws (CLT). The rule provides for the measure "in the case of force majeure or losses duly proven."
The addenda approved by workers and companies also defines the suspension of contracts and establishes shutdowns as a way to preserve jobs. Some of them also provide for the payment of severance pay in installments in the case of dismissals.
According to Juliana Bracks, a labor lawyer at Bracks Advogados, labor legislation and negotiations between employers' and workers' unions can help companies during the crisis and preserve jobs. "It's time to sit down and negotiate. Besides trying to save jobs, companies need to be looked at because many don't have the financial backing to last even 30 days and some say this crisis can last more than 90 days," she says.
In the case of construction in Rio de Janeiro, the idea is that rules are in place during the period of emergency and calamity in Rio de Janeiro. The agreement was signed between the Construction Industry Union in Rio de Janeiro (Sinduscon-Rio) and the Union of Workers in the Civil Construction Industries of the City of Rio de Janeiro (Sintraconst-Rio).
As agreed, the companies must change the working day's start and end time to prevent their employees from using public transportation during peak hours. Companies must also put employees over 60 years or in the risk group to work from home or release them through paid furlough.
If this is not possible, the employee should be told to stay at home and be relieved of his or her duties. This period can be compensated later through compensatory time, 13th salary (a year-end bonus), or vacation, prioritizing this order. The agreement also provides that companies must seek, if possible, to put workers on paid furlough.
Companies may also reduce working hours and salary through rotation and limited to 25%. The rotation, according to the document, "has the objective of not hindering the company's...
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