At midnight on Monday (25) customs auditors of the Brazilian Federal Revenue Service initiated an unofficial strike which has adversely affected activities at all ports as well as airports throughout the country. This strike hinders process of clearing the export and import of cargoes along with the embarkation and debarkation of crew members on ships. Priority cargoes like living animals, hazardous substances such as perishables, drugs, and food products will continue be examined and cleared with no disruption.
Elias Carneiro Jr., president of the Santos Union Branch of the National Union of Federal Revenue Auditors (Sindifisco Nacional) said, “The government has granted pay raises to all professional employees, with the exception of us.” He pointed out a failure of MGI Ministry of Management and Innovation (MGI) concerning commitment term 1 of 2024. The document stated that negotiations would be held on restructuring of careers and salary increases via established forums before July. The commitment was not met for auditors.
Carneiro added the existence of a 26.6 percentage gap in the base salary in the last five years, in spite of the 9% increase in pay that the federal government provided through two tranches. Concerning Federal Revenue Service operations targeting drugs trafficking, smuggling as well as fraud Carneiro said that only important activities will continue.
The Port of Santos, which is responsible for 30 percent of Brazil’s trade balance the impact of the strike is alarming. Jose Roque, executive director of the Sao Paulo State Maritime Navigation Agencies Union (Sindamar) has described the current situation as worrying, and with the potential for repercussions to Brazil’s economy as well as the port industry. Roque stressed the detrimental impact on exporters and also the potential for crew embarking and disembarking being in danger.
This strike could pose risks for holiday merchandise’s timely delivery, forcing companies to use higher-cost air transport to satisfy supply commitments. Roque advised of the import cargo risks, as containers pile up in terminals that could disrupt exports through the tying of essential equipment needed for imports.
Despite Sindamar’s efforts in facilitating trade with foreign countries, recent strikes have brought serious issues. Roque warned that the additional cost related to the storage of containers, container demurrage and the upkeep of refrigerated equipment will ultimately impose a burden on the consumer.
The Ministry of Management and Innovation is still waiting to answer the strike, as of the morning of Monday (25). The earlier negotiations of July suggested salaries of 26%-34% from 2023 to 2026. The ministry believed would exceed anticipated inflation levels for the time period. But the auditors’ counter-proposal of an increase of 40% in the cost of personnel was considered infeasible for the ministry because of budgetary constraints.
The source is DatamarNews