Strike

The strike broke out on September 16 and lasted 43 days. The company maintained an open dialogue with the unions. In all, there were 12 meetings, four of them with the directors. Although Itaipu, through dialogue, has tried to prevent the outbreak of the strike until the last moment, and committed to the unions that the proposed solution would not exhaust the debate, the issue was taken to court by the unions.

Itaipu has been successful, both in substance and in unconscionability of strike, on trial in June 2016 by the vast majority of the judges of the Regional Labor Court of the 9th Region. From the receipt of the claim, the company has developed extensive work on the subject, among which are: Analysis of the current structure of tables, proposal analysis of the trade unions, analysis of functions and salary of all employees, economic and financial costs of proposals (including union), impact on retirement fund of active employees and former employees, economic studies in relation to the dollar, comparison with market wages of large companies (salary survey) and comparison with the salaries of the companies in the Brazilian federal power sector.

Date Action developed
12/08/14 Submission to Itaipu by the Brazilian unions of claim on the subject of pay scales and categorization of Brazilian employees in relation to the Paraguayan employees.
13/08/14 Itaipu’s response stating that the issue would be considered.
26/08/14 Union meetings on the subject and HR meeting with the management team to address the issue.
01/09/14 and 02/09/14 HR presentation to all employees for alignment and exchange of information on salary scale issues.
16/09/14 Initial meeting between Itaipu and unions.
25/09/14 Meeting between Itaipu, trade unions and workers committee, where Itaipu was committed to submit a salary categorization proposal in 90 days.
30/10/14 and 27/11/14 Meeting between Itaipu and unions to present the progress of work and space for debate.
10/12/14 Meeting between Itaipu and unions to submit (within the agreed time) the salary recategorization proposal for 117 Brazilian employees.
12/12/14 Meeting between Itaipu and unions.
16/12/14 Union meetings, in which the proposal was rejected.
22/12/14 to 06/01/15 Christmas and New Year recess.
25/02/15 Meeting between Itaipu and unions, where it has agreed to create a Binational Working Group.
12/03/15 Establishment of the Binational Working Group to study the pay tables.
April/15 Compliance with legal steps to hiring specialized external advice and definition of the Working Group’s scope.
07/05/15 Meeting of Itaipu Working Group and consulting.
08/05/15 Meeting between unions and consulting.
25/05/15 Meeting between Itaipu’s Board of Directors and consulting.
16/06/15 and 17/06/15 Meeting of Itaipu Working Group and consulting.
29/06/15 to 07/07/15 Options assessment for the table: impacts, advantages and disadvantages of each and definition of the binational Itaipu proposal.
29/07/15 Meeting between Itaipu and unions to present the binational proposal for wage tables. Messaging and explanatory video to all employees with the proposed pay scales.
30/07/15 Sending by e-mail to all employees the simulation as would be the categorization in the new salary scale individually. Itaipu’s Board receives the unions to confirm the proposal.
31/07/15 HR performs with the areas a doubt debriefing and clarifications session for employees on the new proposal.
03/08/15 Sending of note by the board to all employees with information, strengthening the proposal and putting the HR team on hand to answer questions and clarifications.
03/09/15 Meeting between Itaipu and unions.
09/09/15 Union meetings, in which the proposal was rejected and there was deliberation by the strike.
15/09/15 Meeting between Itaipu and unions.
16/09/15 Early stoppage (strike).
30/09/15 Mediation at the Ministry of Labor as an attempt to resolve the strike. Itaipu presented an additional proposal, which was not accepted by the unions.
22/10/15 Conciliatory hearing in the Section Specialized in Collective Bargaining of the Regional Labor Court of the 9th Region in Curitiba-PR. Again there was no agreement between the parties.
28/10/15 End of strike. Unions decided to establish collective bargaining agreement of a legal nature in the labor courts.