Legislation that seeks to slash the pay and benefits of Public Servants has passed the committee stage in Brazil’s lower Chamber of Congress.
The Constitutional Amendment, part of the Government’s wider reform plan, aims to impose austerity measures on public sector payrolls, as well as tightening job performance criteria and changing the terms and length of new employee contracts.
It would also give President Jair Bolsonaro powers to eliminate public sector jobs and bodies and restructure Government Departments without Congressional approval.
Congressman Marcel Van Hattem said his centre-right Novo Party was proud to back the reform “that will modernise our public services”.
“We just have to reform the State,” Mr Van Hattem said.
Public sector labour unions have resisted the Bill over concerns it could lead to sudden dismissals and cuts to employee benefits.
Though the Bill would not affect the salaries or terms of current public sector workers, new and future Public Servants would see an end to retroactive pay rises; more than 30 days annual holiday; and any additional service-based leave.
Military personnel, lawmakers and magistrates would be exempt.
There are also concerns over what wider reforms might mean for long-serving Public Servants.
Former Executive Secretary of the Ministry of Planning, Budget and Management, Francisco Gaetani said the biggest challenge was what to do with the current workforce.
“Can you retrain older people for ICT jobs? In a very limited way you can, but there are legal problems because some careers are very rigid, so you can’t relocate them,” Mr Gaetani (pictured) said.
With an election looming in 2022, the Government is pushing hard for reforms to keep private investors confident in its ability to scale back the State.
In August last year, two top economic officials quit the Government, complaining of the lack of progress on the economic and administrative reform program.
Brasilia, 30 September 2021
