In a country where outsourced workers represent 27 per cent (around 13 million) of the workforce in the formal sector, an IndustriALL Global Union Study of precarious workers in Brazil has highlighted the financial, psychological and physical costs of outsourcing on workers’ lives and families.

In-depth interviews were carried out with union leaders and 22 subcontracted workers in the states of Sao Paulo and Bahia. Six of the workers were women and three were migrant workers from Haiti and Bolivia. All the workers are employed by numerous subcontractor companies supplying services to seven different multinational or national companies in the chemical (plastic, cosmetic, personal care, pharmaceutical, ink), garment, and pulp and paper sectors.

The study describes the 22 subcontracted workers reported poorer working conditions and lower salaries than direct employees at their worksite. In one chemical company, they earn half the salaries of direct employees. They get also lower benefits, if they get them at all, notably lower social protection.

Many work longer hours than direct employees. In one case, subcontracted workers work 44 hours a week, compared to 39 hours by direct employees. Several have very irregular working hours, while direct employees benefit from fixed hours. Some work on Saturdays unlike their colleagues.

The study reveals that some workers said they have no access to the work canteen, and when they have; their meal voucher has a lower value than those of direct employees. They have no access to company transport services nor direct employees’ sport and leisure rooms.