Get 40% Off
👀 👁 🧿 All eyes on Biogen, up +4,56% after posting earnings. Our AI picked it in March 2024.
Which stocks will surge next?
Unlock AI-picked Stocks

Brazil committee passes civil service reform bill that trims employee payroll growth

Published 09/23/2021, 06:26 PM
Updated 09/23/2021, 06:41 PM
© Reuters. FILE PHOTO: A man walks near the National Congress building, amid the coronavirus disease (COVID-19) outbreak, in Brasilia, Brazil, March 19, 2021. REUTERS/Ueslei Marcelino

BRASILIA (Reuters) - Legislation aimed at reducing the size of the Brazilian state and trimming the growth of public payrolls cleared the committee stage in the lower chamber of Congress on Thursday in a significant advance for the government's reform agenda.

Despite opposition objections, the measure amends the country's constitution to loosen guarantees for public servants, toughening performance criteria and allowing the contracting of temporary employees for up to 10 years.

Because it is a constitutional amendment, it will require three-fifths of the votes in the plenary, or 308 of its 513 members, though lawmakers are optimistic it will muster the needed support because of the burden of government payrolls on its budget deficit.

The main text passed by a special congressional committee makes it easier to open administrative processes against employees with unsatisfactory performances and to eliminate obsolete positions, a provision fiercely opposed by civil servant labor unions.

"We are proud to back this reform that will modernize our public services," said Congressman Marcel Van Hattem of the center-right Novo Party, adding "we just have to reform the state."

Latest comments

Any step in the direction of reducing the ENORMOUS gvt payroll is a step in the right direction....
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.