Labor reform causes union revenue to plummet by 88%.
Changes to labor laws have drained resources from unions. In April alone, the total amount collected by associations representing workers was R$ 102,5 million – a 90% drop compared to the same month in 2017.
247 - Changes in labor laws have drained resources from unions. In April alone, the total amount collected by associations representing workers was R$ 102,5 million – a 90% drop compared to the same month in 2017.
"The 'fiscal adjustment' has also reached the unions. After the labor reform came into effect in November, which ended the union tax, the entities saw their revenue plummet by 88% in the first four months of the year, according to data from the Ministry of Labor and Employment (MTE). Leaner, the unions want to overcome the blow by being more active with workers and are trying to compensate for part of the drop in revenue by gaining new members."
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This is because, with the new legislation, in effect for more than six months, the mandatory transfer of the equivalent of one day's work, which was destined for unions, central organizations, and federations representing the categories, has been eliminated. The contribution still exists, but it is now voluntary, and the company can only make the deduction with written authorization from the employee.
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