São Paulo IT workers union secures salary increase for 2016

Techies in the Brazilian state get pay rise following "the most difficult negotiation of last few years"

The workers union representing IT professionals in the state of São Paulo has secured an increase in pay in what it defined as "the most difficult negotiation of last few years."

Following several rounds of negotiations, techies at the Brazilian state - home to the main technology companies in the country - were granted a 10,67 percent increase in pay and other benefits such as daily lunch allowances.

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"The current economic scenario in Brazil created a smoke curtain where sectors don't see any opportunities and this only stimulates the fear and the lack of confidence in a return to growth," workers union Sindpd president Antonio Neto said in a statement.

A study published this week suggested that the current recession in Brazil is prompting 35 percent of local organizations to reduce their IT departments, while 10 percent will be replacing more senior staff for employees on lower salaries.

The increase meets the goal of IT workers union, who had been aiming for an increase that would at least cover the inflation rate in 2015 - last year, the increase granted was 7,8 percent, marginally above the inflation rate at the time.

Sindpd started the yearly negotiations by asking for a 11.25 percent salary rise. Employers union Seprosp had proposed a 7 percent rise in salaries for 2016, which was refuted by the workers union, who then mentioned the possibility of going on strike.

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