Coronavirus

Bolsonaro’s new decree comes in for criticism

The decree foresees suspending workers for four months without pay, which could aggravate Brazil's problems further

Bolsonaro new decree comes in for criticism
Photo: cesarvr/Shutterstock

As we explained in our March 20 Daily Briefing and March 23 Weekly Report, experts have grim forecasts for the Brazilian economy heading into a coronavirus-related recession. Estimates for post-outbreak Brazil range from 20 million people out of work to up to 40 million. Total unemployment currently stands at 11.9 million.

Let that sink in. Brazil could have 40 million unemployed workers

On Sunday evening, President Jair Bolsonaro signed a provisional decree (MP 927) that made workers’ conditions even more fragile, allowing companies to suspend workers’ contracts—with no pay—for up to four months.

The move naturally generated a lot of backlash, with the term “Genocidal Bolsonaro” reaching the top of Twitter’s trending topics in Brazil—and number three worldwide. In response, the President said it would consider revoking that section of the decree.

While the backpedaling is certainly good news for Brazilian workers, it highlights how lost the Bolsonaro administration seems to be. “They have no structured plan. It is like they are throwing things at the wall to see what sticks. The government seems to react according to people’s moods. What is the president’s end goal? It’s getting impossible for companies to prepare themselves for the upcoming crisis,” says economist Daniel Duque, of think tank Fundação Getulio Vargas.

Analyzing the controversial labor decree signed by Jair Bolsonaro

We break down the decree’s key points:

  • Contracts can be...

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