Ceará: After Thousands of Layoffs, the Productive Sector Accentuates Charges to the State Government 21-03-2020

After layoffs due to the crisis triggered by the coronavirus in Ceará - a forecast of 7,000 workers fired in the bar and restaurant sector by this weekend -, several productive sectors have accentuated demands on the State Government.

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You businessmen are already presenting to the State Executive strategies to support and survive the business.

The focus would be on keeping small and medium-sized local businesses healthy – the category that is likely to suffer the most from measures to contain the Covid-19 outbreak in the state.

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Obligations

Among them are exemption from tax obligations and flexibility of labor relations during the period of health crisis.

The Federation of Industries of the State of Ceará (Fiec) made a video available with recommendations to entrepreneurs in the sector on how to reduce the economic damage caused by the market freeze.

With the State Government recommending the social isolation of people at home, local consumption is expected to fall and production to follow.

The concern, he explained, is to keep businesses alive so they can keep jobs active, without harming people. “Commerce agrees with all the measures adopted by the State to preserve human life. But what has worried me is the different way of looking after companies.

It is not by extending the payment of taxes that you will save the lives of companies. We are at war and we need the State to waive the burden of taxes so that companies can guarantee jobs”, said Freitas.

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The president of the FCDL also reinforced that the request will be sent to both the State Government and the Presidency of the Republic, so that measures can be taken in all areas of the country.

The market needs effective actions before it dies. My concern is to hold on to jobs. It is the State as a whole that has to handle the situation,” he said.

Start of cuts

In bars and restaurants in Ceará, at least five thousand workers have already been fired. The number could increase to seven thousand made redundant by this weekend.

Therefore, layoffs are a consequence of the crisis caused by the new coronavirus, which forced the State Government to publish a decree last Thursday (19) prohibiting the operation of commercial establishments, such as bars and restaurants across the State.

Recommendations

Especially the ways to face the crisis, the legal manager of Fiec, Natali Camarão, prepared a list of recommendations to entrepreneurs on how to deal with labor regimes during the stoppage of activities and reduce the economic impacts. One of the specialist's recommendations is the application of collective vacations to employees, even for those who have not completed the minimum time.

Therefore, the legal manager also said that companies will be able to readjust the proportion of salary and workload of employees if there is an agreement between the parties. The measure follows a recommendation from the Ministry of Economy to cut wages by 50% referring to a proportional reduction in hours worked.

Construction

Also focused on the health of employees, the Union of Industry and Heavy Construction of Ceará (Sinconpe) also sent a request to the State Government, but for public works to be paralyzed. According to the entity's president, Dinalvo Diniz, none of the works in Ceará was stopped, but the measure could pose risks to the health of workers and companies.

Therefore, Sincope sent a request to the State through Fiec, an entity to which it is affiliated, for the works to be stopped. On the morning of this Friday (20), a team of workers was spotted at the Ring Road construction site.

Retail demands:

Waive, during the period of stoppage of economic activities, all tax, social security, social, fiscal and labor obligations;

Suspend the flow of all deadlines for defense, contestation and appeals in judicial and administrative tax proceedings;

Determine suspension of registration of debts in active debts, protests and tax foreclosures;

Develop with public banks special and differentiated lines of credit for the composition of the working capital of medium, small and micro companies;

Suspend tax audits for the duration of the instability period;

Renegotiate tax debts, covering only the (principal) tax amount, excluding fines, interest, monetary correction and other legal charges; with installments in up to 120 installments.

Establish a Fund that guarantees the payment of rents for micro and small companies;

Make labor relations more flexible;

Waive all costs related to operating permit fees for activities that do not pose a high risk to society;

Preserve the operation of grocery stores in the metropolitan and countryside regions, a source of supply for the less favored social classes.

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