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Pandemic: AGU Analyzes Unions to Combat Salary Cuts

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The STF (Supreme Federal Court) received yesterday (10) an appeal from the AGU (Attorney General's Office) with the aim of withdrawing the unions' action from individual negotiations, developed between the company and the worker, to withdraw the salary or even suspend contracts during the pandemic.

In this sense, the injunction by STF minister Ricardo Lewandowski is seen by the government as legal uncertainty, while at the same time it poses risks to employment relations, which could lead to dismissals.

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Pandemia: AGU Analisa Sindicatos Para Combater Corte Salarial 15 de abril de 2020

With the session scheduled for April 16, the issue will be examined by the Supreme Court shortly thereafter. At the same time, the judges will reach a conclusion as to whether or not to maintain the injunction.

Pandemic and AGU appeals to the STF

The Emergency Employment and Income Maintenance Program was created with the aim of enabling companies to negotiate with workers. The objective was to provide for a reduction in working hours and wages or the suspension of contracts.

Therefore, compensation will be paid by the Union, which may reach up to 100% of unemployment insurance corresponding to the worker's right, if the worker had been dismissed.

According to the Provisional Measure, the individual agreement can be made with remuneration of up to R$$ 3,135 and with a salary greater than R$12,202.12. The agreement is not made by the union, but if there is abuse, it can be activated within 10 days.

The body highlights that it is not feasible to proceed with the support of the union, as it may delay the service of interest to the employee.

The AGU estimates that up to 24.5 million jobs will be expected to join the program. However, this number may exceed the capacity of unions to make decisions. The estimated volume is similar to the average annual negotiation in Brazil, around 45 thousand.

STF Minister Lewandowski reported the authorization of the National Confederation of Industry (CNI) and also the union centers. Soon to watch the action that discusses the government's measures to approve the reduction of wages and working hours during the pandemic by the AGU body.