[Marxism] new attack on Brazilian unions coming?

["andypollack@xxxxxxxx" <andypollack@xxxxxxxx>]

"After the election, Mr. da Silva is expected to further shore up his centrist 
credentials by taking on a sacred cow of the left: an overhaul of Brazilian 
labor law. The government hopes to make it harder to create unions and to 
reduce the union dues that form a significant component of the so-called Brazil 
Cost, the array of business expenses that make Brazil less attractive to 
investors than some Asian countries."

By the way, a few days ago the Journal also ran an article in which mainstream 
economists said Lula was STILL too obsessed with keeping the inflation rate low 
instead of expanding the economy.

Local Elections Test
Brazilian Leader's Agenda

By GERALDO SAMOR and MATT MOFFETT
Staff Reporters of THE WALL STREET JOURNAL
October 1, 2004; Page A13

SAO PAULO, Brazil -- President Luiz Inacio Lula da Silva's Workers Party is 
expected to make a good showing in Sunday's municipal elections, its first test 
at the polls since the former labor leader reinvented the leftist party as a 
defender of free markets.

A strong performance would strengthen Mr. da Silva's hand as he moves to press 
his legislative agenda, which includes plans to streamline Brazil's rigid labor 
code and concede more independence to the Central Bank.


Having tacked toward the center with an austere economic policy since Mr. da 
Silva took office in January of last year, the Workers Party has been bolstered 
by the recent resurgence of Brazil's economy after a painful slowdown last 
year. Mr. da Silva's enduring charisma with the average Brazilian also is 
helping the party.

"The election is coming at a time when the economy and Lula's popularity have 
been strengthening, and Lula should come out of this further strengthened," 
said Alex Agostini, an economist at Brazilian investment firm Global Invest.

Brazilians will elect 5,562 mayors and 51,802 city council members. In an 
interview, Workers Party President Jose Genoino said he expects the party to 
win in the first round in Brazil's third-largest city, Belo Horizonte, as well 
as in the cities of Recife, Aracaju, Palmas and possibly Rio Branco.

The Workers Party currently governs 186 cities; Mr. Genoino declined to make 
any projections as to how many more his party might capture. "We will keep the 
cities we have and add new ones," he said. The economy's rebound "has 
influenced [the Workers Party's prospects] positively because there is a direct 
association between us and the government, but what really decides are the 
local issues, proposals and candidates."

After the election, Mr. da Silva is expected to further shore up his centrist 
credentials by taking on a sacred cow of the left: an overhaul of Brazilian 
labor law. The government hopes to make it harder to create unions and to 
reduce the union dues that form a significant component of the so-called Brazil 
Cost, the array of business expenses that make Brazil less attractive to 
investors than some Asian countries.

Write to Geraldo


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