Union Pressure Makes Rousseff Review New Unemployment Insurance Rule

01/27/2015 - 08h40

The government has admitted privately that it will give in to labor unions and review parts of changes in the rules of unemployment insurance that makes access to the labor benefit more difficult.

According to what Folha has learned, President Dilma Rousseff's team came to the conclusion that, without changes, an interim measure that changed the benefit will not be approved in Congress.

Presidential aides said to reporters that, given the backlash from union leaders, the strategy was to make concessions during processing phase of the proposal in the Legislature.

Now, after statements made by Finance Minister Joaquim Levy, evaluated by the Planalto Palace as unhappy, Rousseff's team believes it may be required to signal more specifically what will change at the next meeting with the unions on Feb. 3.

Last week in Davos (Switzerland), Levy called the unemployment insurance model "outdated," which angered trade unionists and even Rousseff's advisers.

His colleague Miguel Rossetto, General Secretariat of the Presidency, issued a statement on Saturday (24) classifying unemployment insurance as an "entrenchment clause" of workers' rights.

Levy himself acknowledged internally in the government that he was not happy with his statements. He advocates changes in the system, but without removing labor rights.

According to what Folha has learned, the government can change the grace period for granting the benefit on the first request made by the worker.

The unions estimate that this rule will mainly affect young people in a period of economy where there should be high unemployment in this range.

According to the rules set by the economic team, on the first benefit request, the grace period would rise from six to 18 months in the last 24 months worked.

On the second request, the period would go from six to 12 months in the last 16 months worked. In the third, the grace period was maintained at six months.

In addition to unemployment insurance, the government proposed changes in salary bonuses, closed insurance (paid to fishermen during the closed period) and postmortem pension.

Launched late last year, the package of changes in labor and social security benefits aims to save US$ 6.9 billion this year to rebalance public accounts, with US$ 3.4 billion just with unemployment insurance.

President of the Union Miguel Torres says just changing the grace period for the unemployment insurance is not "enough." He also advocates for adjustments in closure insurance and life insurance.

CUT president Vagner Freitas defends changes to all measures.

The unions are organizing protests against the proposals, which they classify as conservative.

Translated by JILL LANGLOIS

Read the article in the original language

	Fabrice Coffrini/AFP
	Joaquim Levy called the unemployment insurance model "outdated," which angered trade unionists and even Rousseff's advisers