Brazil’s Economy Minister compares public servants’ pay raise to Brumadinho; says measure would cause inflation

RIO DE JANEIRO, BRAZIL – In his statements, sent on cell phone messaging groups of Jair Bolsonaro government officials, Guedes claims that if the government raises salaries “and the disease comes back,” in reference to the Covid-19 pandemic, the country will go broke.

“Those asking for a raise now don’t want to pay for the war against the virus.They are saying ‘I’ve already had my vaccine, now I want salary replacement: I’m not going to pay for the war on the virus,'” he said in a passage from the messages.

“An overall readjustment for the civil service means inflation rising, Brumadinho and Macri in the elections! Brumadinho: successive small leaks until the dam explodes and everyone dies in the mud,” the Minister continued.

Guedes recalled the increase authorized by the government to police officers and cited categories that began to demand an adjustment, such as Federal Treasury and Central Bank servants, before pointing out that now everyone is asking for a raise.

He said there would be no problem in granting adjustments within a career restructuring plan, after the approval of the administrative reform, halted in Congress.

“The administrative reform cuts R$30 (US$5.3) billion per year: it could increase salaries by 10% after the reform, valuing the current civil service,” Guedes said.

Guedes had previously taken a public position on the 2021 balance, before the Christmas recess. At the time, he said that a generalized increase to the civil service would bring back inflation and debt.

“If everyone gets a raise, it’s a dishonor to future generations. Inflation will come back, we will plunge into the past, we will snowball into debt again, interest rates will remain high, inflation will be permanently high, and Brazil will plunge into a known dark past,” he said at the time.

Last week, the National Congress passed the 2022 Budget with a provision of R$1.7 billion for salary readjustments for Federal Police and Federal Highway Patrol officers, benefited after negotiation with Bolsonaro.

This has created discontent in other civil service areas, which have not been given raises since the start of the current administration. Federal Treasury auditors have handed over senior positions and announced a cut in their activities to pressure the government into releasing funds to the agency and regulate the payment of bonuses.