Negotiations between workers and companies collapse, and salary adjustments follow suit.
The average salary adjustment in the country has fallen compared to 2017, according to Fipe (Economic Research Institute Foundation); the drop follows the surprising reduction in negotiations between employers and employees after a labor reform that advocated precisely the intensification of these negotiations; negotiations registered with the Ministry of Labor in the first half of this year fell by 39,6% compared to 2017, according to data from Fipe's Salary Meter.
247 – The average salary adjustment in the country has fallen compared to 2017, according to Fipe (Economic Research Institute Foundation). The drop follows the surprising reduction in negotiations between employers and employees after a labor reform that advocated precisely the intensification of these negotiations. Negotiations filed with the Ministry of Labor in the first half of this year fell by 39,6% compared to 2017, according to data from Fipe's Salary Meter.
"The survey also indicates that the median nominal salary adjustment negotiated in 2018 was lower than last year's—2,8% versus 5%—but the proportion of adjustments above inflation (considering an INPC of 1,8%) was higher: 84,6% were above inflation, compared to 79,1% in 2017. There were 7.563 agreements signed, compared to 11.462, and 920 conventions, compared to 1.680."
Collective bargaining establishes rules for labor relations between employees and companies. Conventions are negotiated between workers' unions and employers' associations and apply to the entire category. Agreements, on the other hand, are established between a workers' organization and a company to regulate specific needs of that relationship with employees.