Brazilian Oil Giant Braces For Strikes Ahead Of $50 Billion Auction

[James Regan + 1,776]

https://oilprice.com/Latest-Energy-News/World-News/Brazilian-Oil-Giant-Braces-For-Strikes-Ahead-Of-50-Billion-Auction.html

Labor unions in Brazil have been active this year, threatening to wage an all-out war that began in February against right-leaning President Jair Bolsonaro, which lowered the minimum wage and closed Brazil’s Ministry of Labor arguing that in Brazil there was “an excess of rights” when it comes to labor.

“You have to do away with unions in Brazil,” Bolsonaro told reporters in February.

Not sure how many times you can lead a horse to water, before you need to shoot it.

Brasil has still not discovered why its industry is lacking funding and investment from IOCs, Brazilian labour laws are some of the most ridiculous in the world and have hampered the country for years. If you hire a person for 5000 a month it costs the employer 10,000+ due to some of the craziest rates of taxation, most of which are supposed to benefit the employee. What happens is that people are not being employed on a full time basis due to these excessive tariffs.

Bolsanaro is correct, get rid of the unions and open the market, the only ones benefiting are the unions themselves. 

Average Wage Break down:

Salary 1000

Danger Money (30% of Base salary)

13th Extra Salary (Salary divided by 12)

Holiday pay ( salary divided by 30)

FGTS - Gov Fund 8% of Salary

INNS or National Insurance- 27.5% of Salary

Total- 2305 the employers must pay for the employee to receive 1000 and from that the employee will also be taxed.

ALSO EMPLOYER MUST PROVIDE PRIVATE HEALTH PLAN.

Looks like a great incentive to hire a Brasilian

NEED TO LOSE THE UNIONS NOW

Edited October 24, 2019 by James Regan