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The end of the 6ร—1 scale in favor of 4ร—3 would be the โ€œAPOCALYPSEโ€ for most employers and companies in Brazil! Operating costs, more expensive products and services, increased inflation and other consequences that could directly impact the country's economy

Written by Paulo Nogueira
Published 12/11/2024 ร s 14:32
Updated 16/11/2024 ร s 13:40
executive desperate with the costs that the 6x1 scale in favor of 4x3 could cause for the company and employer in Brazil
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Brazilian businesspeople are on alert with the proposed change in the work schedule from 6x1 to 4x3. For them, the PEC represents a real economic risk: increased operating costs, possible price pass-through to consumers and inflationary pressure.

The recent proposed constitutional amendment (PEC), which suggests changing the working scale from 6ร—1 to 4ร—3, has been generating heated debates. The idea is to reduce the number of days worked to four consecutive days, with three days off.

At first glance, this may seem like an advantage for the worker. However, for the employers and companies in Brazil, especially small and medium-sized ones, this proposal raises serious concerns.

The approval of this PEC would bring economic impacts important, triggering cost increases and even inflationary pressure. Let's understand why companies view this change with fear.

Rising Costs and Need to Replace Labor

With the move to a 4ร—3 scale, many companies would see a drop in the number of productive days per week. Sectors that depend on continuous operation, such as industry, essential services, transportation and health, would face a complicated situation.

To maintain productivity, these companies would need to hire more employees. And what does that mean? Simple: an increase in payroll. In addition to salary, each hire comes with a labor benefits high in Brazil.

This increase in operating costs would be added to the already high Tax Burden and complex labor legislation. In Brazil, keeping an employee under the CLT regime involves considerable costs, such as FGTS, INSS, vacation and 13th salary.

By needing more people to cover the additional rest days, companies would have a direct increase in their fixed costs, which could eventually be passed on to the consumer.

Inflationary Pressure and Passing on Costs to the Consumer

One point of concern for employers is the possibility that increased costs will affect final prices. This type of inflationary pressure This occurs because companies in essential sectors, such as food and transportation, have little room to absorb increased costs without this affecting their prices.

To maintain their margins and business continuity, these companies could pass part of this cost on to consumers.

This transfer of costs generates inflation, as it directly impacts everyone's cost of living. In an economic situation where inflation is already a national concern, adding another source of rising prices can harm stability. country's economy. This cascading effect would affect not only workers, but also companies and, consequently, the entire economy.

Reduced Productivity and Challenges for Competitiveness

The 6ร—1 scale is widely used because it maintains good productivity and allows companies to operate continuously. However, with a 4ร—3 scale, many sectors would face a drop in productivity, as the number of working days would be reduced.

For companies that need constant work, such as factories and customer service companies, a drop in productivity can mean more expenses.

This negative impact on productivity directly affects the competitiveness of Brazilian companies. Foreign companies, in markets with lower tax and labor burdens, would have a significant competitive advantage.

This difference makes it more difficult for Brazilian companies to stand out in the international market, directly impacting the national economy.

Media coverage of the possible end of the 6x1 scale in Brazil
Media coverage of the possible end of the 6x1 scale in Brazil

Devastating Effects for Small and Medium-sized Enterprises (SMEs)

As SMEs would be the most affected by this change. Unlike large corporations, which have more resources and flexibility to deal with changes, SMEs face serious budgetary constraints. For many of these companies, hire additional staff to cover the days extra rest periods simply wouldn't be feasible.

The change in the work scale to 4ร—3, combined with the weight of the labor benefits, could drive small businesses out of business. This would not only reduce job creation, but also reduce market competition, which is essential to maintaining a healthy and dynamic economy.

Sustainability and the Difficulty with Labor Charges

In Brazil, maintaining employees brings with it a high cost of labor benefits. If the PEC is approved and the working day is reduced, companies will have to hire more workers, and fixed costs, such as INSS e FGTS, will increase even further. Without compensation, this change becomes unsustainable for many companies.

To make this PEC viable, it would be necessary to rethink the burden of labor charges, perhaps reducing them to compensate for the increase in payroll costs.

Without this type of compensation, the proposal compromises the sustainability of companies, leaving them vulnerable to drops in productivity and increases in costs.

Effects on the Production Chain and Consumption

The change from 6ร—1 to 4ร—3 would affect not only companies directly, but also their suppliers and partners. An increase in production costs affects the entire production chain, raising the prices of essential products and services for the end consumer.

This effect, called the โ€œcascade effectโ€, triggers further cost increases that spread throughout the economy, contributing to inflation.

Comparing the โ€œcost of Brazilโ€ with European countries is a mistake

Compare the Brazil with countries of Europe where reduced working hours have worked well may seem, at first glance, to be a good argument for supporting change in working scale from 6ร—1 to 4ร—3. However, this comparison ignores a series of structural and economic factors that differentiate the Brazilian reality from the European context. Below, we will understand why this equivalence can lead to misleading and even harmful conclusions for Brazil.

First, it is important to note that many European countries that have adopted reduced working hours operate in scenarios with tax burdens e labor costs lower or at least organized in a more sustainable way for companies. In France, for example, where the working week has been reduced to 35 hours, the government offers a series of tax breaks e subsidies for companies, softening the financial impact. In Brazil, however, the famous Brazil costโ€”composed of high social charges, tax complexity and high bureaucracyโ€”makes any increase in the payroll weigh much more heavily on companies' budgets, especially for small and medium-sized companies.

Furthermore, European productivity and infrastructure are, on average, higher, which allows for greater efficiency per hour worked. In Brazil, productivity is affected by infrastructure and education issues, and a lack of incentives for innovation. Thus, reducing working hours here could further reduce the countryโ€™s already low competitiveness compared to its European counterparts, impacting companiesโ€™ ability to compete both domestically and in the global market.

Another relevant point is that many European countries have social safety nets and employment support programs that work efficiently. In Brazil, these mechanisms are more restricted and do not always reach all sectors of the economy. In a scenario where companies face high costs with INSS, FGTS and other costs, the extra burden of reduced working hours without sufficient government support could generate a wave of unemployment, as some companies would simply not be able to bear the new costs without laying off employees.

Thus, while the 4ร—3 scale may seem ideal in countries with robust economic support structures and a lower tax burden, in Brazil the reality is different. Importing this model irresponsibly, without considering the peculiarities of the Brazilian cost, can result in serious economic and social losses.

We Need to Assess Economic Impacts Cautiously

The PEC that proposes changing the working scale from 6ร—1 to 4ร—3 brings benefits to the quality of life of workers, but also raises alerts for employers and the economy. Rising operating costs, inflationary pressure and productivity challenges are real issues for companies of all sizes.

The viability of the proposal depends on a careful review of companies' labor and tax obligations. Without such an assessment, the economic impact could be significant and put the company's sustainability process of Brazilian companies.

Given the scenario, it is essential that the government and legislative entities analyze the repercussions of this PEC, seeking solutions that benefit both workers and employers, without compromising the country's economy.

CONSIDERATIONS: O CPG Click Oil and Gas does not take a stand against the PEC and recognizes the importance of seeking improvements in the quality of life of workers. However, it is essential to analyze the issue broadly, taking into account the economic and structural impacts that the measure would have on companies and the economy as a whole. After all, significant changes like this need to consider all sides involved, not just what seems most advantageous at first glance.

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Jose Manuel Sandy
Jose Manuel Sandy
12/11/2024 18:58

These businessmen, accustomed to getting rich on the backs of poor workers, are concerned about the freedom of the slaves of the 6x1 workday.

Arthur
Arthur
12/11/2024 21:02

AAAAH GO SEE. If it were bad, developed countries would not have adopted more humane scales. They keep looking for excuses, making poor analyses, trying to justify an outdated and inhumane model. I am a businessman and I support the end of the 6ร—1 scale.

Abel
Abel
13/11/2024 00:00

They said that at the end of slavery too. Do they want people to be slaves?!

Abel
Abel
13/11/2024 00:02

With the increase in technology, production has only increased, but the scale of work has never decreased. The scale does have to decrease, and they have even done this in first world countries and it worked because more motivated employees generate more wealth. It does have to decrease!

Leandro
Leandro
In reply to  Abel
13/11/2024 08:01

I agree with all of you, but at the same time I'm worried about the majority of the poor classes, who drink a lot of booze on the weekends, just imagine the fights at home, etc. and the low salary that will happen, forcing everyone to have two jobs, which will actually increase the workload for them, but I would like to see this impact in practice... I'm self-employed, so it doesn't change.

Ortiz
Ortiz
In reply to  Abel
13/11/2024 08:03

Seriously, what are the countries that have done well? Which ones have a 4-day work and 3-day rest schedule?

Denis
Denis
In reply to  Ortiz
14/11/2024 23:26

France has a working week of 35 hours, even less than what is proposed in the PEC. Iceland has more than 80% of companies in the 4ร—3 format, Norway too, and all the countries that tested the 4ร—3 model saw improvements.

David Luiz Pereira Leite
David Luiz Pereira Leite
13/11/2024 14:39

Large companies come up with this cheap talk that they will increase the price of their products, but they don't do this because the cost of production has increased, they do this because they DON'T WANT TO GIVE UP THEIR PROFIT MARGIN, even if that means precarious workers with no life beyond work! This is the big truth! They just want to profit and profit from the work AND LIVES of others, they want our soul, they want our blood, they don't just want our work anymore!

David Luiz Pereira Leite
David Luiz Pereira Leite
In reply to  David Luiz Pereira Leite
13/11/2024 14:46

And another thing: a drop in productivity? My friend, studies conducted over a decade ago have proven that productivity does not decrease, but rather INCREASES with this work shift model. A happy and rested worker is an attentive worker, fewer work accidents, fewer absences due to medical certificates, fewer absences under pretext. You don't have to go out in the middle of the day to take care of your own health or your children; you can do this on your free days if this proposal passes. The benefits infinitely outweigh the disadvantages!

Paulo Nogueira

With a technical background, I worked in the offshore oil and gas market for a few years. Today, my team and I are dedicated to bringing information from the Brazilian energy sector and the world, always with credible and up-to-date sources.

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