Deregulation, apps and the worsening of labor conditions

The entrepreneurship work model with apps can be seen as a reflection of a flexible economy(deregulation) that, while offering the benefits of autonomy and flexible hours, also presents challenges that affect workers' quality of life and quality of work.

LABOR RIGHTS

Andé Maia

8/3/20254 min read

two people shaking hands
two people shaking hands

The Consolidation of Labor Laws in Brazil

The CLT was created by Decree-Law No. 5,452, dated May 1, 1943, and sanctioned by President Getúlio Vargas during the Estado Novo period. The Consolidation was signed by the then-president at the São Januário Stadium (Vasco da Gama Rowing Club), which was packed to celebrate the achievement. Two years earlier, in 1941, Getúlio had signed the creation of the Labor Court at the same place and on the same day of the year. The Consolidation unified all existing labor legislation in Brazil at the time and marked a milestone by definitively incorporating labor rights into Brazilian law. Its main objective is to regulate individual and collective labor relations.

The main historical milestones of the CLT included the regulation of working hours, vacations, the 13th salary, and maternity leave, which were implemented to ensure a minimum level of dignity for workers. Additionally, the CLT introduced the concept of the Union in Brazil, promoting collective organization and strengthening workers' voices in negotiations with employers. The legislation highlighted the need for a balance between capital interests and worker protection, a challenge that persists to this day.

Although the CLT became a landmark in the history of labor laws in Brazil, its effectiveness and relevance have been questioned over time. Contemporary challenges such as the flexibilization of labor laws and the precarization of working conditions require a critical look at the effectiveness of laws established nearly eight decades ago.

Flexibilization and Neoliberal Reforms

The flexibilization of labor laws in Brazil is somewhat linked to neoliberal reforms that gained prominence starting in the 1990s. These reforms are based on the belief that reducing rigidity in labor relations can stimulate job creation, increase company competitiveness, and boost economic growth. Proponents of this model argue that deregulation is essential for companies to quickly adapt to market changes, thus promoting a more dynamic work environment.

However, the flexibilization of labor laws has generated and continues to generate debates about its social and economic consequences. Optimists claim that the ability to hire and fire more easily encourages companies to hire new workers. On the other hand, critics point out that this approach can lead to the precarization of working conditions, as the protection of workers' rights may be diminished. The lack of guarantees can result in increased informality, where many workers lack access to benefits such as paid vacations or retirement.

Evidence regarding the relationship between flexibilization and job creation is mixed. In some cases, such as in places with high labor turnover, flexibilization did not result in the much-anticipated job creation. Instead, it was observed that weakening labor laws can perpetuate situations of vulnerability and social inequality.

Deregulation and Precarization of Working Conditions

The deregulation of the labor market, along with the rise of digital platforms, has brought a series of issues related to the precarization of working conditions. The new employment configuration, marked by forms of work such as services provided through apps, reveals the fragility of the model concerning labor rights. Workers operating on digital platforms often face a lack of adequate social protection, such as paid vacations, sick leave, and retirement contributions, which may not be guaranteed under these "new" forms of work. Deregulation favors irregular and precarious labor practices.

Given the current scenario, the flexibility promised by digital platforms has actually increased job insecurity because workers are subjected to a system where their guarantees are limited. In many cases, pay is precarious and working hours are unpredictable, making it difficult to maintain a stable income. The entrepreneurial work model with apps can be seen as a reflection of a flexible economy that, although offering the benefits of autonomy and schedule choice, also imposes challenges that affect workers' quality of life.

The impacts of deregulation are even more evident when we observe the role of the State in protecting workers' rights. Insufficient regulation not only enables labor exploitation but also hinders the creation of a safe and fair work environment. Without specific regulation for these new models, legal uncertainties arise and there is a mismatch between the realities faced by workers and existing labor laws, which were developed in a different context, considering the jobs of that time. Understanding the discussion about the precarization of working conditions in the context of digital platforms is essential to grasp the effectiveness of current legislation and the possible solutions that can be implemented to ensure workers' rights in the digital economy.

Data Sovereignty and Privacy in the Workplace

In recent years, data sovereignty and privacy in the workplace have emerged as central issues in the debate about workers' rights and corporate responsibility. With technological advances, the collection and use of employees' personal data have become common practices, raising concerns about how this information is handled. Companies are now in a position not only to collect reliable data on employee performance but also to manage sensitive information that can impact employees' privacy.

Future Perspectives: Towards Fair Work

We are undergoing rapid transformation in work environments due to digitalization and automation. Workers face challenges. As new forms of work become increasingly prevalent, questions arise about protecting workers' rights. The world of work is constantly evolving.

To achieve a future where workers are protected, a new approach will be necessary to keep pace with and reflect on the new dynamics of the labor market.

With all the challenges, opportunities also arise to innovate management practices and the architecture of labor laws, bringing a more holistic approach that protects workers.