Last week saw the initiation of more strikes by over 10,000 real estate construction workers on 100 building sites in the northern eastern state of Piauí on the basis of a salary readjustment that should have occurred in November 2011 - in addition demanding better working conditions, health plans and transportation vouchers.  By the end of the week an agreement was made on the basis of a 10 percent pay rise.

 

Construction worker dissatisfaction has become increasingly apparent on building sites across Brazil - in addition to the major strikes such as what occurred in Pernambuco in October last year, in the last week alone developments have needed to be halted in Salvador (reigniting tensions after previous strikes in March 2011); Suzano in São Paulo (see this YouTube video link) and on an Odebrecht hydro-electric plant project in Paranaíta, Mato Grosso.

 

Particularly on the Minha Casa, Minha Vida projects (where constructors operate to tight budgets) salary levels have become notoriously low, ignoring the tough and demanding work required on site.  Employees often travel long distances; work in environments where health & safety is respected little and receive very few of the rights that are compulsorily placed on employees (but invariably disrespected).  Please see this news bulletin exposing salary payment delays and poor working conditions of a social housing project in Itaquaquecetuba (São Paulo), recorded in November 2011.

Two press clippings (extracted in December 2011 from Brazil´s Folha newspaper) demonstrating how the rapid growth of property prices in Brazil has filtered through to the country's favela communities - with rental figures that are very arguably beyond feasible affordability levels of the country´s low income groups.  Due to the existence of very few other housing options, most residents do not have any choice but to pay such sums for what are plainly appalling and sub-humane living conditions.  Please click here to view this blog post.

As 2012 will mark the 5th year anniversary of the launch of the Brazilian government led Growth Acceleration Programme (Programa de Aceleração do Crescimento, PAC), specialists speaking to Brazil's "IG Economia" newspaper recently expressed their concerns related to the low economic growth directly related to the various infrastructure projects happening around the country.  Please click here to view this blog post.

The Regional Council of Real Estate Agents in São Paulo (Creci-SP) has recently pointed out that rising rental figures are having a proportionate effect on the number of contracts not being renewed.  According to José Augusto Viana from Creci-SP speaking to the Diário Comércio Industria: "when contracts expire, owners are asking for absurd prices which are beyond the means of the renter."  Please click here to view this blog post.

A number of real estate specialists speaking to Brazil's Terra news site have commented that the days of market euphoria - fuelled by high launch volumes and accumulated debt levels - are now clearly over and 2012 will be a year where construction companies will have to take significant caution.  Please click here to view this blog post.

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