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Following the position of the National Leadership of Brazilian Bank Workers’ Unions, coordinated by CONTRAF-CUT (National Confederation of Financial Sector Workers), bank workers throughout the country rejected the proposal of bankers and decided to go on strike from Tuesday 18 September until further notice.

On 5 September, Contraf-CUT sent a letter to Fenaban, the employers’ organisation, to inform them about the mobilisation schedule and to reaffirm the importance of seeking a negotiated settlement. But the banks gave no answer.

The strike action proposal was approved by more than 130 local unions represented by the National Leadership in a meeting that took place on 12 September after bankers presented their proposal of 0.58 of real increase against 6% as demanded by the unions.

A survey made by the Inter-Union Department of Statistics ans Social Economic Studies reveals that 97% of wage agreements in the first half of the year included increases in real wages nearly all above the 0.58% proposed by Fenaban.

"The bank workers are going on strike because they are outraged by the attitude of petty and greedy bankers. It’s the most profitable sector in the economy and it continues to set records of profitability. Bankers reward their top executives with increasing millionaire remuneration while they pay workers lower wages than in neighboring countries. These workers presented a proposal that was lower than almost all wage agreements signed within less profitable sectors in the economy, during the same period ", explains Carlos Cordeiro, president of Contraf-CUT and coordinator of the National Leadership .

The six largest banks (Banco do Brasil, Itaú, Bradesco, Caixa Econômica Federal, Santander and HSBC) made R $ 25.2 billion net of profit in the first half of the year, even taking into account in the balance R $ 39.15 billion as provisions for risky loans. "This is a trick move because delinquencies increased only 0.7 percentage points in the first half compared to the same period last year and is a downward bias", explains Carlos Cordeiro.

The proposal of Fenaban is also a complete contradiction to the policy of annual compensation of senior bank executives. According to data provided by the four largest banks in the Brazilian Securities Commission (CVM), the directors have a statutory increase of 9.7%, which represents a net increase of 4.17%. Each executive Director of Bradesco will make R$ 4.43 million this year. Santander's Director, R$ 6.2 million. And Itaú’s Director, R$ 8.3 million in the year.

It is a huge contrast with the wage floor of bank workers today - R$ 1,400. This floor, which corresponds to US$ 681, is less than the Uruguayan bank workers’ floor (US$ 1,089) as well as the Argentinians (US$ 1,200), according to a survey done by CONTRAF-CUT.

"That’s a perverse situation. We have the biggest bank profits and the highest salaries for executives, along with lower wages for workers. Unacceptable practices like these are what make Brazil one of the 12 most unequal countries in the world and the fourth worst in income distribution in Latin America ", criticizes the president CONTRAF-CUT.

"The bankers pushed their workers to strike. Despite record profits, even making up their balances and paying senior executives with high real increases that will give many an annual gain of $ 8.4 million, bankers refuse to meet workers’ demands. Bank workers will answer to this intransigence with a much stronger strike action compared to previous years”, says Carlos Cordeiro, president of Contraf-CUT and coordinator of the National Leadership.

The main demands of the workers are the following:

● Wage increase of 10.25% (real increase of 5%).

● Increase in the floor wage for R$ 2,416.38.

● Three extra wages as profit share plus bonus of R $ 4,961.25.

● Career Plan for all bank workers.

● Increase of 10.25% in all benefits

● More hirings, protection against unjustified dismissal and end of high turnover rates.

● End of abusive sales targets and moral harassement

● More Safety

● Equal opportunities.

Source: Contraf-CUT