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Crescimento com distribuição

Salary gains


Money in the right pocketbook. The distributive role of the collective agreements

It’s not only the millions of workers who receive the wage gains who are positively impacted. The funds that go into the pocketbooks of working women and men feed consumption and turn the economic wheels of the country. The increases granted in 2013 alone should inject about R$ 12 billion more into the Brazilian economy in 2014, according to DIEESE data.

The wage share of GDP increases

As a result of these continuous wage adjustments over the past decade, the wage share of GDP in Brazil has increased. That is, workers’ progressively have a greater share in production of the country's wealth through their earnings. After a downward trend dating from the beginning of the FHC government, the wage/GDP ratio began growing again in the Lula and Dilma governments, going from 46.26% in 2003 to 51.40% in 2009, including social contributions of workers and excluding freelancer remuneration.

It is interesting to note that most of Brazilian economic growth in the last 11 years (about 75%) was due to an increase in numbers of employed persons and 25% came about through productivity gains — which demonstrates, on one hand, the extraordinary strength of the recovery of wages in the country and, secondly, the potential the economy and the working world still has for growth through investments in innovation, technology and personnel training. It is no wonder the Dilma government has invested decisively, in did Lula, expanding the federal technical school network, public-private partnerships for the education and training of millions of youths through the National Program for Access to Technical Education and Employment (Pronatec) and expansion and building of federal public universities outside of state capitals and major cities.