Close to half a million federal workers are on strike in Brazil. They contend that the government did no consult them about a constitutional amendment that the Lula administration wants to pass in Congress, which will affect pensions.

Since July 8, approximately 464,000 federal public workers (58 percent) are paralyzed in a protest against the proposed government reforms in the Social Security System. Customs officials joined the strike approximately one week ago as state judges and Central Bank workers are also threatening to strike. The groups on strike are part of the National Coordination of Entities of Federal Workers (CNESF) and include employees in education, statistical and geographical research, social security, public federal functionaries, social welfare, and fiscal, judicial and health authorities.

The freight logistics sector in Brazil is feeling the impact in two main segments:

1. Registration of Shipment Documentation:

OCEAN:
Brazilian Customs is accepting registration only the day after vessels arrive at ports. Normally documentation is handled between 24 and 48 hours prior to vessel arrival. Under the current situation, consignees can only initiate the clearance process two days after vessel arrival.

AIR:
Air documentation registration is proceeding on schedule so long as there are no discrepancies such as incorrect cargo labeling and weights, etc. Where inaccurate cargo documentation is discovered, the length of time needed to complete the registration is unknown.

Transshipment of cargo from plane to warehouses, which usually takes between four and six hours, is now running between eight and 12 hours.

2. Customs Clearance of goods:

OCEAN/AIR:
Only perishable, essential medical supplies and goods, which do not require either physical or document check up (automatic release), are being cleared. The automatic or non-automatic release status is defined by the system. Nobody has control of it therefore the timing for cargo releases is unknown.

Striking employees are holding daily meetings to discuss the situation. However, even the leaders of the work stoppages are unsure of their course of action each day.

Until the Brazilian Congress votes on the proposed Social Security reforms during the second week of August, a series of rolling, intermittent strikes are expected to occur, followed by one or two days of normal activity.