Brazil Bank Workers Walk Out İn Nationwide Strike

Banks in 20 states and the Federal District closed their branches Tuesday as staff went on strike over pay and conditions.



States affected include Rio de Janeiro and Sao Paulo, Brazil's financial center, where workers from the country's five biggest banks -- Banco do Brasil, Bradesco, Caixa Economica, Itau Unibanco and Santander -- have closed high street branches, now plastered with posters announcing the strike.



The country's biggest union, the CUT, said the strike would continue indefinitely.



Of approximately 500,000 retail bank workers in Brazil, 142,000 in Sao Paulo alone are represented by the union, according to the Folha de S.Paulo newspaper.



Workers are demanding a pay increase of 16 percent -- a real-terms increase of 5.6 percent, as well as a higher annual bonus and for the minimum for monthly salaries to be set at 3,300 reais ($860).



Demands also include a greater share of company profits, better conditions, improved security at branches, more generous allowances for meals, groceries, and childcare, and that banks cover the costs of graduate and postgraduate courses.



The nationwide strike that was called last week was sparked after leaders from a major CUT-affiliated Sao Paulo banking union shunned the latest offer by the Brazilian Bank Federation of an increase of 5.5 percent -- leading to regional unions coordinating a nationwide walkout.



The union said the offer was below what the banks could afford, arguing the industry made profits of 36.3 billion reais ($9.5 billion) in the first half of 2015.



The next assembly will be convened Oct. 13.



Workers have been angered by dismissals and forced early retirements by the banks, despite reports the sector is set to post record earnings this year. 



Banks have tried to streamline their workforces due to a deep recession. Economists surveyed by Brazil's central bank said Monday they expected GDP to contract by 2.85 percent this year and 1 percent in 2016.



Investors were also recently spooked when credit ratings agency Standard & Poor's downgraded Brazil to speculative territory, and are fearful the two other major agencies, Fitch and Moody's, could soon follow suit.



Despite the strikes, customers are still able to access some services through ATMs and online banking, as well as lottery retailers, post offices and supermarkets – regularly turned to in times of frequent industrial action by Brazilian banking staff.



A strike in 2014 closed high street banks for a week, re-opening only once staff had secured an 8.5 percent increase. A year earlier, staff crossed their arms for 23 days before settling on an 8 percent pay rise.



Bank workers' wages have increased more than 20 percent in real terms during the last decade, according to local media. - Sao Paulo