Brazil’s government launched a new batch of measures to counter the effects of the coronavirus crisis on employment and businesses’ cash flows. The program enacted on Thursday allows companies to reduce workers’ wages and working hours, or temporarily suspend labour contracts. To apply, companies will have to preserve jobs after salaries and hours are restored.
Roberto Piscitelli, professor of public finance at the University of Brasilia (UnB), says the scenario is “frightening” and the official measures, although positive, are still timid. “The government is taking everything very smoothly and it seems to me that it is adopting palliative measures, which only remedy the crisis in the labor market but do not really reinvigorate the economy”, he told LABS.