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Brazil overrules unions on outsourcing

You may recall we’ve been covering the struggle Brazil has had in its outsourcing industry. The government wanted to legalise outsourcing any sort of job, the unions thought this was a terrible idea, the government parried, it all went to court…

…and as you’ll gather from the headline, it’s all done and according to this report in Firstpost, the Brazilian court has voted 7-4 in the government’s favour. The underlying benefit (if you’re in favour of the government) is that this automatically sorts out around 4000 lawsuits in which the plaintiff claimed his or her job should not be outsourced.

The unions maintain that this is a blow to working people because it undermines collective bargaining; it’s certainly a blow to the traditional role of unions. The government believes it will have the effect of reducing unemployment, which surely has to be welcomed.

Intelligent Sourcing remains ambivalent. It could have both effects – it will depend entirely on the aims of the employers in question. It is to be hoped that they will look to outsourcing partners for best practice and innovation as well as cost savings.

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