Sharing the Wealth: Brazilian Tech Workers Threaten Tech Blackout if Pay Demands Not Met

Talk about viral. The revolt in the Middle East and the budget conflicts in Europe and the US are spreading to the BRICs. Until now, Brazil has been quiescent, especially compared to last year's demonstrations in China. What is interesting about this story is the understanding the communications workers have of their power in the internet age, particularly in a growing economy.

Angela Mari in Brazil Biz:

"Information Technology Workers Union of São Paulo (Sindpd) have been holding demonstrations across the state as better salaries and benefits are demanded by its member base. Hundreds of IT professionals have been mobilized by the union, which represents 80,000 workers, in various cities over the last couple of weeks to express their dissatisfaction over the progress of salary talks with employers. Sindpd’s demands include a 11.9% linear salary increase, profit sharing plans and a daily meal allowance of R$ 15 ($9).

Meanwhile, Seprosp, the union representing the IT firms has been in talks with Sindpd since the start of 2011 – typically the two unions will set the rules of engagement for the year including salary levels in January – is offering a 6,47% increase to mitigate the impact of the rising inflation, and rejects all the other demands.

On Friday, the chairman of Sindpd, Antonio Neto, said: “If there is no proper agreement which is consistent with the revenue of sector companies for the employees, we will be obliged to start the first technology blackout in the state of São Paulo – and Brazil. The [Seprosp] bosses should know that we are heading towards a strike.”

Sindpd’s argument is that, considering that the IT sector saw an average growth of 12% to 14% in 2010 with a 10% to 20% boost expected in 2011, covering only the inflation impact seems insufficient.

The demonstrations by the Sindpd, which have included distribution of information and leaflets through the night, have been held at companies such as HP-EDS, as well as local financial services technology provider Tecban and corporate systems firm Totvs. The talks are still ongoing