Labor unions in Rio Grande do Sul are asking the government for a raise.
Approximately 100 workers, affiliated with the six major labor unions in Rio Grande do Sul, submitted a proposal to the State Government requesting a 16,81% increase in the regional minimum wage, effective January 1, 2014; this minimum wage covers more than 1,1 million workers in Rio Grande do Sul.
Government of RS - Around 100 workers, linked to the six trade union centers in Rio Grande do Sul, delivered a proposal to the State Government requesting a 16,81% readjustment for the regional minimum wage starting January 1, 2014. The meeting took place this Monday (16), at the Fernando Ferrari Administrative Center (Caff).
To determine the percentage increase, the labor unions consider: the projected average GDP growth for Brazil and Rio Grande do Sul at 3,9%, plus 5,9% for inflation, taking into account the estimated INPC (National Consumer Price Index) from January to December 2013, plus the recovery of losses since the creation of the minimum wage in 2001. When implemented, the value was 28% higher than the national minimum wage.
Currently, the lowest wage floor is 13,57% higher than the national average, resulting in a difference of 12,71%. Workers propose dividing the difference into two installments, which would correspond to 6,16% per year. In their unified demands, workers also request: the inclusion of new categories not yet covered, with the creation of new salary brackets; changes to the salary brackets of categories that show a lag in the current bracket; enshrining the minimum wage in the State Constitution, establishing a general readjustment criterion, taking into account national and state economic growth, plus inflation; and including in the law the guarantee of the minimum wage as the minimum salary for all workers.
State Public Servants.
The workers also requested a meeting with Governor Tarso Genro to deliver the proposal, a meeting that will be confirmed in the coming days, informed the executive secretary of Cdes-RS, Marcelo Danéris, coordinator of the meeting, which lasted about an hour.
The minimum wage covers more than 1,1 million workers in Rio Grande do Sul and has four tiers. Currently, the values are: Tier 1: R$ 770,00; Tier 2: R$ 787,73; Tier 3: R$ 805,59; Tier 4: R$ 837,40. Under the current government, the adjustments granted are as follows: 2011: 11,60%; 2012: 14,75%; and 2013: 10%. In the three years of the current government (2011-2013), the accumulated real gain totaled 20%, practically double the gain achieved during the four years of the Rigotto government (12,43%) and the four years of the Yeda government (10,09%).
The economy of Rio Grande do Sul is strong.
"The purchasing power of workers boosts the economy, strengthens commerce, services, and industry. Besides distributing income, the minimum wage is a factor in the state's development. Our economy is more vigorous and can undoubtedly support this adjustment," said the president of the Central Workers' Union of Brazil (CTB), Guiomar Vidor. In addition to the CTB, leaders and workers from the Unified Workers' Central (CUT), the New Central Union of Workers (NCST), Força Sindical, the General Union of Workers (UGT), and the General Central of Workers of Brazil (CGTB) were present.
"We are experiencing a special moment in Rio Grande do Sul: GDP grew 15% in the second quarter and 8,9% in the first half of the year. We should reach around 6% by the end of the year, more than double the national average," noted Danéris. The secretary highlighted a set of policies implemented by the State Government – such as the Rio Grande do Sul Harvest Plan, the new Fundopem, the Microcredit program – among other initiatives impacting industry, agriculture, and innovation, strengthening entrepreneurship in the state.
Marcelo Danéris reported that, so far, business leaders have not requested a meeting with the Government to discuss the issue. The Executive branch has until December to send the bill to the Legislative Assembly, so it can take effect next year.
"The state government recognizes the regional minimum wage as an instrument for income distribution and protection of categories that are not organized in unions or covered by collective bargaining agreements. Contrary to what business entities claim, the minimum wage does not generate unemployment. It is a real and appropriate increase for the local economy," said Danéris. Between 2001 and 2012, formal employment in the Porto Alegre Metropolitan Region grew by 44,2%, the unemployment rate fell by 53%, and the average real income of salaried workers belonging to the poorest 25% group grew by 31,6%, according to an analysis by Dieese.
The meeting took place in the morning at the headquarters of the Economic and Social Development Council (State Administrative Center, 21st floor). For the past two years, the topic has been addressed within the Council at the request of Governor Tarso Genro. A Chamber