Marinho wants a higher minimum wage and income tax exemption to boost the economy.

Current Brazil Network - The Minister of Labor and Employment, Luiz Marinho, stated that the Lula government intends to present a proposal for a new minimum wage increase policy on May 1st. On the same date, as announced by President Luiz Inácio Lula da Silva, the minimum wage will be... adjusted to R$ 1.320Furthermore, the government is expected to announce an income tax exemption for workers earning up to R$ 2.640, the equivalent of two minimum wages. 

The main May 1st event will be organized by the trade union centers in Vale do Anhangabaú, in São Paulo. The entities informed this Thursday (20) that President Lula will be present.

In an interview with CUT portalThe minister stated that these measures will result in an increase in the country's total wages, improving the living conditions of the working class. At the same time, they also serve to stimulate the economy by increasing consumption.

“We want to restore better living conditions for the working class, particularly for those with the lowest wages. This is so that consumption can return, so that everyone can live better again,” said Marinho. On the other hand, he cited high interest rates in Brazil as one of the main obstacles to development, as they inhibit investment.

The minister stated that the Central Bank (BC) needs to accept "once and for all" that the conditions are already in place for a reduction in the basic interest rate (Selic). "Brazilian interest rates are the highest in the world, it's not justified. I said there would be a spike in inflation. There wasn't. The dollar went down. In short, all the conditions are in place for the Central Bank to begin reducing interest rates to facilitate the recovery of investment, economic growth, and the generation of opportunities."

Predictability

For Marinho, the last few years of low growth have proven that making work more precarious is not the solution. He highlighted that, currently, the stock of formal jobs – around 42 million – is equivalent to what it was in 2015. Since then, the 2017 labor “reform” has only managed to compensate for the jobs lost during the crisis that led to the impeachment coup against President Dilma Rousseff. But with an important difference, according to him: the fall in total wages.

In this sense, Marinho is betting on a policy of increasing the minimum wage to reverse this situation. According to calculations by the ministry, if this policy had not been abandoned after the coup, the minimum wage today would be R$ 1.391.

In support of the new policy, the minister highlights the predictability of the minimum wage valuation formula. He believes it is a "mistake" to try to control inflation solely by restricting credit and curbing demand, as the Central Bank has been doing. The "best way," according to him, is to expand supply, in a manner agreed upon with society.

“The businessman only hires someone else if his product sells more. And he will sell more if the working class has an increase in its total wages, if we are able to buy more,” he argued. “If you are buying more, if you are selling more, you will produce more. Consequently, you will hire more. So the predictability that there will be growth in total wages is what induces companies to plan an increase in their production. So this pact is very important.”

Earlier this month, the labor unions presented a unified proposal Regarding the minimum wage policy for the next 25 years, union leaders advocate for an inflation adjustment based on the INPC (National Consumer Price Index), a real increase equivalent to GDP plus a "floor," and a review of the application of these measures every 10 years. However, according to Marinho, the government's economic team prefers to link the minimum wage variation to GDP growth. per capitaThe minister is confident that dialogue will lead to a solution.

Work through apps

According to the minister, dialogue is also the way to regulate app-based work. He said that the platforms are "agreeing" to discuss regulations that guarantee social protection for those working in the sector. Another point under discussion concerns the need to establish a limit on the working hours of these workers.

“I cannot accept that a worker, to take home 3.500 or 4.000 reais, has to work 16 or 18 hours a day,” said Marinho. He classified this work model as “almost slavery.” Furthermore, the long hours condemn workers to illness. He also wants more transparent remuneration criteria.

“There are platforms that confiscate up to 60% of the fare. How can you value work like that? What kind of negotiation conditions do we need to create for this category of workers to negotiate with their employer? Who is their employer? The algorithm?” the minister questioned. He further stated that seeking an understanding is laborious, but, based on negotiations between the parties, he intends to present a bill to Congress that represents an “alternative” that guarantees more dignity to this type of work.

Marinho also highlighted the need to strengthen union structures, which have been severely attacked in the last seven years. The goal, according to him, is to serve the entire working class, expanding the defense of rights beyond formally employed workers.

“It is necessary that we build very quickly within the tripartite group that discusses strengthening collective bargaining and the union structure, and reviewing points of the labor reform. (…) In order to adjust workers and employers, creating harmony to face the natural differences between capital and labor.”