April lays off employees and doesn't pay them.
After the start of approximately 800 layoffs, Abril filed for bankruptcy protection, including severance pay and a 40% fine on the FGTS (Brazilian employee severance fund); "The company carried out the maneuver, making it seem that the two actions (mass layoffs and bankruptcy protection filing) were orchestrated together, with one of its objectives being to avoid paying the employees," says the Committee of Journalists Laid Off from Abril.
247 - On the morning of August 6th, employees of Editora Abril were surprised by the closure of the group's magazines and the mass dismissal of journalists, graphic designers, and administrative staff. In the following days, the numbers were around 800 professionals. In total, 11 titles were discontinued. In the personal lives of Abril employees, the measures have been devastating. According to the Committee of Journalists Dismissed from Abril, "the company dismissed them unfairly, without negotiation with labor representation entities and without providing official explanations."
On August 15th, nine days after the start of the layoffs, Abril filed for judicial reorganization (which was accepted by the court), including in this process all severance payments to those dismissed, as well as the 40% fine on the Guarantee Fund for Length of Service (FGTS). "In other words, one day before the deadline to fully compensate the former employees, the company carried out this maneuver, creating the impression that the two actions (mass layoffs and the request for judicial reorganization) were orchestrated together, with one of their objectives being to avoid paying the employees," says the committee.
"Furthermore, it suspended the accounting process (formerly known as homologation), did not release the key for withdrawing FGTS funds and the unemployment insurance forms, leaving the dismissed employees without any financial coverage. When they try to contact HR, they receive contradictory information – therefore, the dismissed employees remain in the dark," he adds.
According to the committee, "Editora Abril has long been failing to honor other commitments to the women and men who dedicated themselves and bravely participated in a daily effort to help the company recover from the crisis it faced." "For example: professionals laid off in 2017 and at the beginning of this year saw their severance payments made in installments, something considered illegal. With the judicial reorganization, their final installments were frozen. Thus, people who have not had any connection with the company for at least seven months are listed as creditors and prevented from receiving what remains. Photographers, text contributors, proofreaders, and art editors were also affected, and likewise, they will not see their money," it said.
"Let us make clear our profound indignation at the fact that the family that owns Editora Abril – which for decades has accumulated a fortune in the billions of reais with the company and with our work – is now trying to preserve its assets and does not want to use a small part of it to fulfill its legal obligation to pay us what is owed. Finally, it is necessary to consider the cultural damage of this measure. With the closure of titles such as Cosmopolitan, Elle, Boa Forma, Viagem e Turismo, Mundo Estranho, Guia do Estudante, Casa Claudia, Arquitetura&Construção, Minha Casa, Veja Rio and Bebe.com, thousands of readers have been left abandoned," it continues.
The committee stated that, "for Brazilian democracy and national culture, this drastic measure represents enormous impoverishment. Titles that, over decades, promoted education, health, science, and entertainment; contributed to raising awareness of societal problems; shaped citizens and contributed to the autonomy and personal development of all who read and shared the vast amount of content produced by print magazines, their digital versions, or social networks, are dying out." "Nothing has been put in place of these publications, leaving a huge gap in the history of communication in our country."
According to the organization, "part of the crisis, as is known, is global and has impacted the press worldwide. Another part is due to Abril losing touch with the plurality of opinions and distancing itself from the diversity that characterizes the Brazilian population. Management with no interest in editorial policy has led to the deterioration of newsrooms, failed to invest in digital products, and compromised the quality of its publications under the pretext of 'cutting costs.' Furthermore, it only listened to executives and consultants, without considering reporting professionals and the public."
"In this difficult time for the entire nation, with unemployment on the rise, we, the laid-off journalists, are organized and counting on the support of the Union of Professional Journalists in the State of São Paulo. We are also united with other categories – graphic designers and administrative staff. This is a demonstration of tenacity in defending the integrity of our rights and a sign of readiness to face the necessary struggles to come. We are asking for nothing more than what our work, by law, has guaranteed."