“Labour law reform for what?”

Benjamin Steinbruch, the CEO of the second major steel-maker company in Brazil, CSN, just bought a steel plant in Germany and did his math: the total payroll expenditures and energy costs of his company in Brazil are higher than in Germany. If you think that statement would be enough to encourage the Brazilian government to attack the “Custo Brasil” (Brazil Costs), forget it.

According to Lauro Jardim, in a conversation two weeks ago with some of her advisors in the Palacio do Planalto, President Dilma Rousseff said the following about a potential reform in labor laws: “With unemployment at 5.7%, why do I need to change anything? Europe needs to think about this more than we do.”

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