The president of Força Sindical, Miguel Torres, stated that he should go after the government if Minister Fernando Haddad’s (Finance) spending package reaches workers’ benefits. An ally of President Luiz Inácio Lula da Silva (PT), the federation of trade unions increased the chorus of ministers against possible changes that involve, among them, changes to unemployment insurance.
This is one of the points that is on the table and is an obstacle for the government to roll out the package. For more than a week, Lula and the economic team have been meeting with ministers to define the areas that will have resource cuts, under much resistance from social area commanders.
“It worries me a lot. We know the difficulties we have in the National Congress, because it is a very conservative Congress. Imagine the government sending a PEC (proposed amendment to the Constitution) or a complementary bill authorizing some cuts. How will this come back”, asked Torres in an interview with Folha de S. Paulo published on Saturday (9).
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The change in unemployment insurance provides for the discount of installments in the value of the termination fine on the FGTS paid by the employer in the event of unfair dismissal. It is added to other possibilities, such as review and cuts in the Continuous Payment Benefit (BPC).
These two benefits are classified by the government as “acquired rights” that Lula’s leader in Congress, Senator Randolfe Rodrigues (PT-AP), has already said will not be changed.
Torres said he understands the need to reduce public cats, but that it should not affect workers. The centers sent a letter to Lula last week asking for a meeting about the cuts.
“I’m not saying that there doesn’t need to be a correction, that there doesn’t need to be spending control, but we are taking it from those who need it most, the unemployed worker”, he pointed out.
During an event by the Metalworkers Union of São Paulo and Mogi das Cruzes (SP) last Friday (8), the workers held up a banner with the words “Haddad wants to include unemployment insurance on Black Friday (sic). Be careful: rights are not in liquidation.”
The government’s difficulty in unlocking the spending cut package, which has led the financial market to distrust its ability to cut its own meat, is due to internal conflicts that Lula has had to arbitrate. The last meeting that could conclude this, on Friday (8), ended without negotiation.
There are at least five ministers against the cuts: Wellington Dias (Social Development) has already said that he will not change Bolsa Família and the Continuous Payment Benefit (BPC), Luiz Marinho (Work and Employment) criticized the possible reduction in unemployment insurance, and Carlos Lupi (Social Security) threatened to resign if the department had cuts.
Privately, Nísia Trindade (Health) and Camilo Santana (Education) also resist possible changes to the constitutional floors of their areas, including linking the Basic Education Fund (Fundeb) to the fiscal framework.
