Brazil: Supreme Court ruling allows companies to outsource all types of jobs; trade unions allege it is a setback for workers’ rights
Author: Reuters (US), Published on: 6 September 2018
"Brazil's top court upholds unrestricted outsourcing", 30 August 2018
Brazil's Supreme Court voted 7-4 on 30 August to allow companies to outsource all types of jobs, a ruling that confirms the constitutionality of rules set last year under a law that was fiercely opposed by unions.The decision will help employers resolve some 4,000 pending lawsuits against the outsourcing of core jobs in companies, cases that were based on an adverse ruling by a superior court in 2011. The ruling was welcomed by business leaders who argued that outsourcing would create jobs and reduce Brazil's high 12.3 percent unemployment rate. The Sao Paulo group SindusCon-SP that represents 1,374 building firms said outsourcing was "indispensable" for the modern construction industry. But the Força Sindical labor federation called the decision "nefarious" and said unrestricted outsourcing was a big setback for workers' rights because it undermined collective bargaining and created second-class workers who would not enjoy benefits.