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Once Symbols Of Stability And A Good Guaranteed Retirement, Major Government State-Owned Companies Like Correios, Petrobras, Infraero, Serpro, And Embrapa Will Need To Lay Off Employees To Save Billions And Reduce Cash Deficit
RIO DE JANEIRO, BRAZIL – Amid the federal government’s guidance to reduce costs and generate results, state-owned companies will need to further cut the number of employees in 2019. A survey conducted by G1, based on information from the Ministry of Economy and companies, indicates that the number of layoffs this year may exceed 25,000.
According to Fernando Soares, Secretary of State-Owned Companies Coordination And Governance (Sest) of the Ministry of Economy, seven voluntary dismissal programs (PDVs) or encouraged retirement from different companies have already been approved by the government this year.
The government estimates a total of 21,500 layoffs throughout the year just with these seven programs, which could generate a payroll saving of approximately R$ 2.3 billion per year.
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This number does not include the PDVs announced in April by Petrobras, which by law do not require government approval for the release of layoff programs. Also considering the expected 4,300 layoffs at the oil company, the total expected layoffs for the year in state-owned companies reaches 25,800.
Among the state-owned companies that have already announced PDVs or encouraged retirement programs are Correios, Petrobras, Infraero, Serpro, and Embrapa.
The plans are primarily aimed at older workers who are approaching retirement age or who are already retired by INSS.
The reduction in the workforce of state-owned companies has been occurring continuously since 2015, in a process initiated during Dilma Rousseff’s government.
According to the secretariat, since 2015, the number of cuts resulting from the implementation of voluntary dismissal programs has reached approximately 44,000.
Just last year, there was a reduction of 13,434 people in state-owned companies using this system. According to official data, the main reductions were at Caixa Econômica Federal (2,728), Correios (2,648), and Banco do Brasil (2,195).
Although the market generally accepts state-owned companies, they have been criticized by unions and workers’ federations.
The National Federation of Workers in Correios and Telegraphs (Fentect) classifies the layoff program at Correios as “part of the state scrapping project for outsourcing and privatization.”
Currently, there are 134 federal state-owned companies, of which 88 are subsidiaries of Petrobras, Eletrobrás, Banco do Brasil, Caixa, Correios, and BNDES. In 2016, there were 154.
In the last two years, 20 state-owned companies were privatized or liquidated, most of them subsidiaries of Eletrobrás and Petrobras.
The government of President Bolsonaro has committed to significantly reduce the number of state-owned companies and advocates the sale of several of them, as well as their subsidiaries.
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