Water shortage causes 3 layoffs.

The Federation of Industries of the State of São Paulo (Fiesp) released a study last week showing the damage caused by the water supply crisis affecting the population of São Paulo. The survey was conducted between May 12th and 26th with 229 micro and small businesses (up to 99 employees), 140 medium-sized businesses (100 to 499 employees), and 44 large businesses (500 or more employees). It reveals that more than 3 jobs have already been lost due to the lack of water. The layoffs result from the reduced pace of production and the drop in industrial productivity. According to Fiesp, the trend is that the situation will worsen even further in the coming months.

According to Eduardo San Martin, environmental director of the employers' association, the Campinas region, with its 5,5 million inhabitants, is one of the most affected. Industries are supplied by the PCJ Basin – formed by the Piracicaba, Capivari, and Jundiaí rivers, which serves more than 70 municipalities in this region of the interior of São Paulo state. "The water scarcity is leading to reduced productivity. There are no official figures; companies are cautious in disclosing information, but the problem has already reached us. There are companies that have already eliminated a production shift; there are several negative examples for the productive development of the region: 3 jobs have ceased to exist because of this problem."

The study also pointed out that, in every three companies, two are concerned about the possible interruption in the water supply in the region. The possibility of rationing later this year is a concern for 67,6% of the 413 industries interviewed by the Department of Research and Economic Studies (Depecon) of Fiesp. "Already thinking about the consequences of the interruption in supply, 64,9% of companies believe that the measure would have an impact on their revenue: 17,9% believe that the impact would be 'strong', while for 47% it would be 'small'. Large companies were the ones that most indicated an impact on revenue," describes the Valor newspaper on Thursday (17).

The "dead volume" is dying.

Fiesp (Federation of Industries of the State of São Paulo) has not yet released studies on the metropolitan region of São Paulo, the most affected by the collapse of the Cantareira System. However, there are reports that several industries in the capital and surrounding areas are already suffering from the supply crisis. Last week, the Brazilian Institute for Consumer Protection (Idec) released a report confirming the sharp increase in complaints from residential consumers. The Cantareira System supplies 8,8 million people in Greater São Paulo. To avoid official rationing – which in reality already exists – the government decided to use the reservoir's strategic reserve, the so-called "dead volume," but this palliative measure is also running out.

On Monday (14), Sabesp itself confessed to the crime. Almost two months after the start of pumping from the "dead volume", the water level reached 18,2% in the Cantareira System, according to the state-owned company. On May 16, when the pumps began to draw from the technical reserve, the level jumped 8,2 percentage points in one day, to 26,7%, with an increase of 182,5 billion liters of water. Now, it is already in danger again, with the drop in recent days. Governor Geraldo Alckmin (PSDB), however, insists on stating that there will be no rationing and that the reserves are sufficient until the beginning of 2015 – he could admit that they are sufficient until shortly after October, in proof of electoral fraud!

Saint Peter is innocent!

The governor, a member of the PSDB party and running for reelection, also insists on blaming Saint Peter for the water crisis in São Paulo – aided by the pro-government media. The headlines always mention drought, without holding the PSDB – which has dominated the state for almost two decades – responsible for the lack of investment and planning in the sector. But Saint Peter is innocent! From 2004 to 2013, Sabesp distributed R$ 4,8 billion in profits to its shareholders in Brazil and abroad. During this same period, however, it did not even comply with the guidelines established by the 2004 concession for the Cantareira System, when there was another water supply crisis in São Paulo. These guidelines already foresaw actions and investments to meet the population's demands.

In 2004, Geraldo Alckmin was already occupying the Palácio dos Bandeirantes in his first term – the PSDB party in power is always the same! At the time, he also asked the population to save water and prayed to the heavens for more rain. Faced with the crisis, the renewal of the water concession already indicated urgent measures: 1) Reducing dependence on the Cantareira System, creating alternative sources; 2) Combating the brutal water losses of Sabesp; 3) Increasing sewage collection and treatment. None of these were implemented satisfactorily. To satisfy the shareholders' appetite, investments in the sector were reduced, and Sabesp even laid off workers and reduced system maintenance.

Currently, of the 3 trillion liters of water collected in reservoirs, Sabesp loses 750 billion liters due to leaks in collection and distribution. It also treats only 64% of the domestic sewage under its responsibility. And it's impossible to claim, as the neoliberal PSDB likes to say, that these crimes stem from cash flow problems. Sabesp earns R$ 11 billion a year from its high tariffs. The current water supply crisis in São Paulo, like previous ones, cannot be attributed solely to the weather. It stems from the lack of investment and planning by the PSDB, the famous "indigestion shock" of the PSDB, which prioritizes shareholders at the expense of the population!

Article published in Miro's Blog