São Paulo technology workers get pay rise

Union campaign secures a 7.8 percent salary boost and a share of employer's profits

IT workers in the Brazilian state of São Paulo will get 7.8 percent salary increase and the right to a share of employer's profits as the main outcomes of this year's pay and benefit negotiations.

The increase in pay is way less than the union representing the state techies, Sindpd, was demanding: the original demands included a 10.5 percent rise increase in lunch allowances (which in Brazil are paid for by employers) to R$18 ($6.6) per day, plus larger contributions towards health insurance and profit sharing plans for all IT workers in the state.

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After having this initial set of demands refuted by employers union Seprosp - which represents large companies such as SAP, Capgemini and Logica - who offered a 6.5 percent rise, workers union and employer representatives settled on the 7.8 percent increase, plus profit sharing plans and the R$15 ($5.5) meal vouchers in the third round of negotiations.

The employers insisted that it would be pointless to insist on a bigger increase due to the downbeat forecast for the Brazilian economy in general.

Earlier in the campaign, Sindpd made the point that salary debates should have nothing to do with the "supposed economic instability" of IT companies, but decided it was wise to take up the offer rather than repeating last year's strike.

"The most important thing is that we managed to meet the main expectation of sector workers, which was to secure the main benefits. [The agreement] gives us a base to continue fighting for more," says the president of workers union Sindpd, Antonio Neto.