Perception of Labour Reform Bill Affected Following Mass Layoffs at College

12/11/2017 - 11h39

The dismissal of 1,200 professors on Tuesday (the 5th) at Estácio College, the second-biggest higher education institute in Brazil, has affected the perception of the labour reform bill that was recently signed into law, and may potentially spill over into efforts to approve the pension reform bill.

At least that's what businessman Chaim Zaher believes. He was the majority shareholder at Estácio before he sold his shares in August.

Even though the mass layoffs were viewed as a devastating sign of what the reform could lead to, Mr. Zaher believes that it was merely an attempt made by the institute to improve its finances, and that such practices will not be commonplace in the sector.

Mr. Zaher also disclosed the motives that led him to leave the company, which is listed in the stock market, and said that he was skeptical when it came to the role of financial capital in the education sector.

"The stock market wants short-term results. On many occasions, that means that the quality will go down a little", said the entrepreneur, whose assets include the Maple Bear children's school franchise, which he recently acquired, and the Pueri Domus franchise, which he reassumed ownership of.

He also said that "it was the owners of the institutes who put an end to the Fies [student scholarships]"."Instead of allowing Fies to do its part, contemplating those who can't afford [tuition fees], they offered it to those who could afford it".

The entrepreneur denied rumors that the discontinuation of Fies was what led him to leave Estácio, and views his renewed interest in basic education as a form of returning to his origins.

Translated by THOMAS MATHEWSON

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	Danilo Verpa/Folhapress
	Businessman Chaim Zaher