Social Dialogue for Formalization. Ministry of Labor and Employment Brazil September 2014
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1 Social Dialogue for Formalization Ministry of Labor and Employment Brazil September 2014
2 Agenda: Brazil s position among developing economies Evolution of informality in Brazil Government policies that impact informality Challenges National Plan to Combat Informality among Employed Workers PLANCITE Suggestions for policy direction
3 Social Dialogue for Formalization Brazil in the global context of informal labor. Source: Statistical update on labor in the informal economy. ILO Department of Statistics, June Country, Year Informal labor, excluding agriculture(%) Brazil (2009) 42.2 Panama (August 2009) 43.8 Costa Rica (July 2009) 43.8 Dominican Republic 48.5 Argentina (2009 IV Qtr) 49.7 Mexico(2009 II Qtr) 53.7 Colombia (2010 II Qtr) 59.6 Ecuador (2009 IV Qtr) 60.9 Nicaragua (2009) 65.7 El Salvador (2009) 66.4 Paraguay (2009) 70.7 Honduras (2009) 73.9 Bolivia (2006) 75.1
4 Taxa Rate de of informalidade informality Brazil no Brasil, by gender, por gênero, % 56.0% 54.0% 52.0% 50.0% 48.0% 46.0% 44.0% 42.0% 40.0% Total Homem Male Mulher Female Source: National Housing Survey PNAD(NSSD)/IBGE * The NSSD was not carried out in 2010 because it was a census year. The values for that year were obtained through simple interpolation
5 Transition to Formality Integral strategy Social Dialogue for Formalization Seven important areas identified by the ILO for decent-work policies when approaching the issue of the informal economy: Strategies of growth and quality job creation; Regulatory environment, including the application of international labor standards and other fundamental rights; Organization, representation and social dialogue; Encouragement of equality: young people, women, Afro-descendent population, disabled people, immigrants; Entrepreneurism, skills, finances, management and market access; Extension of social protection; Local development strategies (urban and rural).
6 Some national policies related to the fight against informality (laws): Complementary Law 123/2006 National Micro and Small Enterprises Act Complementary Law nº 128/2008 Individual microentrepreneurs - IME; Interministerial Goal 02/2011 creates Registry of Infringing Employers - Dirty List ; Law /2012 Determines the organization and operation of Labor Cooperatives; establishes the National Program for Promoting Labor Cooperatives PRONACOOP; Law /2011 and Law nº /2013 Exemption from liability; Constitutional Amendment Nº 72/2013 Established equality of labor rights for domestic workers and other urban and rural workers; Decree 7.943/2013 Establishes the National Policy for Rural Employed Workers;
7 Challenges More knowledge for better interventions Tailor laws and widen their scope Use social dialogue in the development and implementation of policies for integration Guarantee the sustainability of reducing informality
8 In May 2014, the Ministry of Labor and Employment launched the National Plan to Combat Informality among Employed Workers (PLANCITE), with the following foundations: 1. Diagnostics Precise mapping; 2. Information Campaigns for clarification and guidance; Partnerships Government and other institutions; 3. Intervention Planned and coordinated oversight, with simultaneous application in all of Brazil; Awareness of presence of oversight
9 PLANCITE: Foundations: 5. Monitoring 6. Division Measuring the effectivity of inspection; Consequences of repeated irregularity, according to legal provisions
10 Principal measures of PLANCITE: 1. OVERSIGHT To direct the fiscal actions to sectors and regions with greater informality; 2. ORIENTATION AND SOCIAL AWARENESS; 3. CONSEQUENCES of repeadetly having an unregistered employee: a) EXCLUSION from the Simples Nacional system, stated in the Complementary Law 123/2006; b) EXCLUSION from participation in procurement Law 8.666/1989; c) EXCLUSION from financial assistance with public resources.
11 Suggestions for strategies to facilitate the transition from the informal to formal economy (considering the realities of each country): Recognize that informality causes, among other problems, decent work deficits and unfaithful competition in the labor market. Mapping of informality; Implementation of integral policies; Evaluation of the forms of social protection related to formalization according to their nature (occupational or not) and their form of financing (contributory or not); Tailoring of the costs of formalization according to the contributive capacity of each social actor;
12 Strategy suggestions: Stimulate the enforcement of Labor Inspection
13 Thank you Maurício Gasparino da Silva Secretariat for Labor Inspection Ministry of Labor and Employment of Brasil
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