After Billion Deficit, American Stores Begins Wave of Dismissals and For Now, the Cuts Hit Temporary Workers in Rio de Janeiro. São Paulo May Be the Next State.
American Stores, one of the largest retailers in Brazil, which entered into judicial recovery on January 19, began on Tuesday (31) to dismiss outsourced professionals. According to reports, the cuts started in Rio de Janeiro, the company’s headquarters, which was founded in 1927. The next step is expected to be in São Paulo, where the company has a larger number of stores and distribution centers (DCs).
Americanas Denies Dismissals and Claims They Are Just Interrupted Contracts
The dismissing in Rio de Janeiro is related to indirect employees, but is also expected to extend to staff hired under CLT. In other locations, where there are fewer points of sale, such as in Porto Alegre, for example, dismissals are already impacting employees with less than a year of service, also on a case-by-case basis.
When contacted through its press office, Americanas denied the dismissals and claimed that it only terminated some contracts with outsourced service providers. The company has about 45 thousand direct employees and 60 thousand indirect, totaling about R$ 43 billion in debts with creditors indicated in the judicial recovery.
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Ricardo Patah, president of the Workers’ Union and the General Workers’ Union (UGT), stated that he was informed by Americanas that the cuts affected 50 outsourced employees in the technology sector in Rio de Janeiro, Porto Alegre, and São Paulo.
This Friday (3), there will be a meeting to discuss whether Americanas plans to hire new service providers or if this is already a move to reduce third-party personnel. Also, this Wednesday (1), the union held a meeting with the Public Labor Ministry to discuss the case.
Workers’ Union of Rio de Janeiro Not Informed About Dismissals
Patah emphasizes that the union has dealt with other retailers in solvency situations, such as Mappin, Mesbla, and G. Aronson, and maintains a vigilant position regarding labor rights. The president highlights that in the case of Mappin, at the end of the 90s, for example, it was the union that discovered that the company was going through serious financial problems.
The fee deducted from payroll was not being directed accordingly. Companies that enter judicial recovery, in general, reduce their workforce before the request, so that the debts from terminations are also included in the process, anticipating some flexibilizations.
However, as it was being pressured by creditors, Americanas expedited its plans and ended up filing for recovery before it could make the layoffs, meaning the amounts owed to dismissed workers cannot enter the judicial recovery process and must be paid by the company.
The Workers’ Union of Rio de Janeiro stated that it had not received information about such layoffs. The entity, along with labor unions, announced that it would hold a demonstration in defense of the workers in the chain. The protest is scheduled to take place this Friday (3), in Cinelândia, in downtown Rio.
Americanas Will Not Be Able to Hire New Employees Due to Judicial Recovery
On Monday (30), representatives from retail unions from various regions of Brazil met with the Minister of Labor and Employment, Luiz Marinho, to discuss the impacts of Americanas’ recovery on workers in the sector.
According to judicial specialist, lawyer Filipe Denki, to lay off employees, the company does not need judicial authorization. Denki states that Americanas in judicial recovery cannot increase expenses without authorization, meaning it cannot hire employees.
Expense cuts such as store closures, for example, also do not necessarily need to be communicated to the courts.


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