CUT (SP), the São Paulo region of the Brasil trade union centre, StreetNet affiliate SINTEIN, and CONTRACS CUT (union of service and commercial workers) held a seminar on informal economy workers on 9th and 10th November 2005. The seminar was the first of its kind to focus on the informal economy and brought formal and informal trade union structures together to discuss issues of common concern.

The seminar was co-hosted by the global union federation (PSI) Public Services International and StreetNet International and was held at the office of SINTEIN in São Paulo.

At the seminar issues billed for discussion were firstly, the informal economy and the role of the state and the challenges these present to the CUT/SP as a national trade union centre. Secondly, alternative ways of organising that are appropriate to the informal economy workers and the work conditions in the sector were on the agenda for discussion.

Objectives

• To improve the organisational capacity and instill discipline in the informal sector.
• To intensify the demand for legislation and regulation specifically for the informal economy.
• To invest in skills development and capacity building.

CUT/SP president, Edilson De Paula Oliviera noted that unemployment was the main cause of the informal economy. He reiterated that CUT is committed to the organisation of the informal economy. It was noted that 96% of informal economy workers do not receive social security. Legislation that is sensitive to the needs of family and individual micro-enterprises is needed and such legislation needs to have mechanisms that arrive at appropriate taxation for informal economy workers. Micro-lending institutions needs to be more flexible to meet the needs of the workers in the informal sector. The identity of the informal economy worker is repressed and the sector is marginalised. The informal economy is growing and making a contribution to economic growth.

Resolutions

• Unionise workers in the informal economy.
• Create more forums for discussion and interaction among informal economy workers, and improve leadership and the strength of the union leaders.
• Push for economic policies which are transparent.
• Full participation in the challenges facing the informal sector.
• Create home-based networks of organising home-based workers
• Work together with the public and private sector and civil society to identify ways that informal economy work conditions can be improved.

Documentation on the informal economy is to be presented by CUT/SP to the municipal administration to the São Paolo province and the federal government. The next CUT Brasil annual congress in 2006 will have the theme informal economy. (Source: Report by Elida Cruz - PSI and CUT/SP)

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