Brazil: trade unions braced for dip in funding when mandatory union dues end

As of November, mandatory union dues – which until have been paid by all Brazilian workers to fund trade unions – will turn into a voluntary contribution. The change forms part of reforms that were approved by the Brazilian Congress in July (see article n°10312). Unions estimate that the new regime will cause their annual income to drop by 3 billion Real (800 million euros). They are demanding that the government adopts a measure to extend the trade union contribution negotiated as part of collective agreements (contribuição assistencial ) to apply to all workers affected by a particular agreement. This would go some way to compensate for the loss of income due to the abolition of mandatory dues.
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Income drop of between 30% and 50%. Before the reform, trade unions and union federations earned around one quarter of their funding from the obligatory tax paid by workers, both union members and non-members, equivalent to one day’s salary per year. Unions also receive money through a contribution, the size of which is established via the signing of a new collective agreement, which is paid monthly by union members. Trade unions and particularly union federations and central union bodies are b

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