TST Orders Correios Back to Work, Sets Pay Terms in Strike Ruling

Overview

• Brazil’s labor court declared the Correios strike legal but mandated an immediate return to work, with employees expected back on December 31.
• The ruling grants a 5.1% salary adjustment retroactive to August 1, a 70% vacation bonus, and 200% pay for overtime.
• Most clauses from the prior collective agreement will remain in force for one year under a normative sentence that expires at the next August base date.
• Strike days will be deducted from pay in three equal monthly installments calculated individually, and earlier orders required 80% staffing per unit with a R$100,000 daily fine per union for noncompliance.
• Correios received R$10 billion from a government‑backed R$12 billion loan arranged by a consortium of major banks, with R$2 billion expected in January, as management advances a restructuring that includes agency closures and a voluntary departure program reported to target up to 15,000 jobs.