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Financial News: ELETROBRAS: Labor Court Suspends Sale Of Distributors

ELETROBRAS: Labor Court Suspends Sale Of Distributors

06/05/2018 - 16:27:00 (RTTNews)

(RTTNews) - The Labor Court of Brazil's 1st Region, in Rio de Janeiro, ruled last night that the state-owned power company Eletrobras suspends the sale of six distributors in the country's North and Northeast regions until it presents reports on the impact of privatization on employment contracts.

The ruling is related to a lawsuit by five unions that consider that the transfer of control or the liquidation of Eletrobras' distributors could jeopardize the employees' and outsourced employees' positions.

Judge Raquel de Oliveira Maciel ordered that Eletrobras and the distributors individually or collectively submit within 90 days a report on the impact of privatization on the contracts and the acquired rights by its employees, under penalty of payment of a fine of R$ 1 million.

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