After spending more than decade in uncertainty, Brazil is finally considering a bill (PL 4330/2004) for the adoption of a regulatory framework for outsourced work. Today, outsourcing is restricted to non-essential business functions like cleaning and transportation. With the passing of the bill, all public and private sector companies would be able to contract out their labor force. There would be no limitations on the types of position or percentage of the workforce to be outsourced.
This legislation is highly controversial, and its ultimate passage is uncertain. Brazilian unions and some political parties are coming together to fight against the bill’s implementation, calling for work stoppages and demonstrations. The workers are protesting by blocking roads, halting services and holding demonstrations. The bill is now under review by the Senate and, if passed, must be signed into law by the President. Given the polarity of this issue, and the current popularity ratings of the incumbent administration, it is to be seen if, under these circumstances, the President will approve the bill and pass it into law – or not!
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