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Ceará: After Thousands of Layoffs, Production Sector Increases Demands from State Government 03-21-2020

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Following layoffs due to the crisis triggered by the coronavirus in Ceará – with an estimated 7,000 workers laid off in the bar and restaurant sector by this weekend – several production sectors have stepped up demands on the State Government.

You businessmen They are already presenting business support and survival strategies to the state Executive.

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The focus would be on keeping local small and medium-sized businesses healthy – the category that is expected to suffer most from measures to contain the Covid-19 outbreak in the state.

Ceará: Após Milhares De Demissões, Setor Produtivo Acentua Cobranças Ao Governo Do Estado 21 de março de 2020

Obligations

These include exemption from tax obligations and flexibility in employment relationships during the health crisis.

The Federation of Industries of the State of Ceará (Fiec) has released a video with recommendations to businesspeople in the sector on how to reduce the economic damage caused by the market freeze.

With the State Government recommending social isolation for people at home, local consumption is expected to fall and production will follow suit.

The concern, he explained, is to keep businesses alive so they can maintain jobs without harming people. "Businesses agree with all the measures adopted by the State to preserve human life. But what has me concerned is the differential approach to protecting companies.

"It's not by deferring tax payments that you're going to save companies' lives. We're at war, and we need the government to waive its tax burden so companies can secure jobs," Freitas said.

The president of FCDL also reinforced that the request will be sent to both the State Government and the Presidency of the Republic, so that measures can be taken at all levels of the country.

"The market needs effective action before it dies. My main concern is to maintain jobs. The government as a whole has to maintain this situation," he said.

Start of cuts

At least five thousand workers have already been laid off in bars and restaurants in Ceará. This number could rise to seven thousand by this weekend.

Therefore, layoffs are a consequence of the crisis caused by the new coronavirus, which forced the State Government to publish a decree last Thursday (19) prohibiting the operation of commercial establishments, such as bars and restaurants, throughout the State.

Recommendations

Regarding ways to address the crisis, Fiec's legal manager, Natali Camarão, has compiled a list of recommendations for business owners on how to manage labor regulations during the shutdown and mitigate the economic impact. One of the specialist's recommendations is to grant collective vacations to employees, even those who haven't completed the minimum time.

Therefore, the legal manager also stated that companies may adjust the salary-to-workload ratio of employees if the parties agree. This measure follows the Ministry of Economy's recommendation to cut salaries by 50%, a reduction proportional to the hours worked.

Works

Also focused on employee health, the Ceará Heavy Construction Industry Union (Sinconpe) also sent a request to the state government, but this time asking for public works to be halted. According to the union's president, Dinalvo Diniz, none of the projects in Ceará have been halted, but the measure could pose health risks to workers and companies.

Therefore, Sincope sent a request to the State through Fiec, an entity to which it is affiliated, for the works to be stopped. On the morning of this Friday (20), a team of workers was seen at the Anel Viário construction site.

Retail demands:

Waive, during the period of suspension of economic activities, all tax, social security, social, fiscal and labor obligations;

Suspend the flow of all defense, contestation and appeal deadlines in tax judicial and administrative proceedings;

Determine suspension of registration of debts in active debts, protests and tax executions;

Develop, together with public banks, special and differentiated lines of credit for the composition of the working capital of medium, small and micro-enterprises;

Suspend tax audits while the period of instability lasts;

Renegotiate tax debts, covering only the tax amount (principal), excluding fines, interest, monetary correction and other legal charges; with payment in up to 120 installments.

Establish a Fund to guarantee the payment of rent for micro and small businesses;

Make labor relations more flexible;

Waive all costs related to operating license fees for activities that do not pose a high risk to society;

Preserve the operation of grocery stores in metropolitan and rural regions, which are a source of supply for the less privileged social classes.