Discrepancies in base of registered labor and employe unions and compulsory contribution

Abstract

This paper aims to discuss the quality of the data records of the Ministry of Labour and Employment (in portuguese Ministério do Trabalho e Emprego [MTE]), as data about labor contributions of employees of these entities and other monetary transfers. These elements are important in order to understand failures in the distribution of compulsory union dues, which can serve as evidence of the existence of formal associations built only to take advantage of obligatory contributions. In order to achieve those objectives, we analyze the base of registered labor and employer unions available at the MTE web site, which consists of about 17,000 associations and their interrelations. Based on these data, the paper shows many discrepancies such as validity of acts and registration processes, gaps in information about the union pyramid structure, and excessive homonymy between managers in different unions. These circumstances influence the compulsory contribution and influence the balance between freedom and unicity, since some cases create barriers to the creation of labor unions that effectively represents its members. The paper also analyzes data on regularity of labor union in relation to taxes such as Brazilians Employment Compensation Fund and social security contributions. Such data indicates that most associations held debts or irregularities, which indicates at least negligence in relation to its own employees, if not unlawful. The results suggest lack of transparency and control over the registration and influence to transfer, and such an approach represents an innovation related to indicators of public policy of compulsory transfers and taxes.