Labor reform reduces lawsuits against banks by 62%.
Lawsuits against banks in labor courts fell by 62% after the labor reform implemented by the Michel Temer government; between January and July of this year, 15,6 lawsuits were filed, compared to 40,8 in the same period of the previous year; the financial sector saw the largest drop in the percentage of labor lawsuits nationwide.
247 - Lawsuits against banks in labor courts fell by 62% after the labor reform implemented by the Michel Temer government, according to a survey by the newspaper. Folha de São PauloBetween January and July of this year, 15,6 lawsuits were filed, compared to 40,8 in the same period of the previous year. The financial sector saw the largest drop in the percentage of labor lawsuits nationwide. The industrial sector, which leads in labor claims, also experienced a 45% decrease during the period, with the total number of lawsuits filed falling from 334,1 to 183,9.
The high volume of labor lawsuits is cited by financial institutions as one of the limiting factors for lower interest rates, since they are included in bank spreads. This expense, which comprises the banks' administrative expenses, represented, according to Central Bank data, 16% of the Credit Cost Indicator (ICC) last year. Despite the decrease in 2018, this reduction was not reflected in the rates charged by financial institutions.
The banking sector is one of those that registers the highest rates of complaints in the Labor Courts. According to experts, the reduction in lawsuits is linked to limitations resulting from the restriction of free legal aid, stemming from new labor laws that stipulate workers must pay procedural and legal costs if they lose their case.