End of the 6x1 shift would raise labor costs by 7.84%, says Ipea study
A study by Ipea indicates that abolishing the 6x1 work shift in Brazil would increase labor costs by 7.84%, with a significant rise for other work schedules as well.
A recent study by the Ipea (Institute of Applied Economic Research) has revealed that the abolition of the 6x1 work shift in Brazil, which entails six days of work followed by one day of rest, would lead to a 7.84% increase in labor costs. This analysis focuses on formal labor contracts under Brazil's Consolidation of Labor Laws (CLT) and considers the transition to a standard 5x2 work shift, which reduces weekly hours from 44 to 40. If Brazil were to change to a 4x3 work system (36 hours a week), the costs would rise even more, by 17.57%.
The report suggests that despite the potential increase in labor costs, the economy could absorb these changes, akin to how it has adapted to minimum wage increases that exceed inflation rates. Felipe Pateo, a planning and research technician at Ipea and a contributor to the study, noted that there are historical precedents where similar cost adjustments did not destabilize the economy. He emphasized that although these changes would incur costs, the overall economic impact can be managed effectively.
This discussion is particularly relevant as Brazil contemplates labor reform and seeks to improve work-life balance through reduced working hours. Analysts and policymakers will need to weigh the implications of increased labor costs against the potential benefits of healthier work environments and improved employee satisfaction, which could further contribute to economic stability in the long term.