On 18 March 2025, in Porto Alegre (Rio Grande do Sul), members of CUT and other labor unions carried out a march to protest against the increase of the reference interest rate for the Brazilian economy, known as Selic, and the to demand the end of the 6x1 work week (six days of work, one rest day).

Supply-chain Risk Briefing

1. Summary

On March 18, 2025, unions including CUT conducted peaceful protests in Porto Alegre, Rio Grande do Sul, Brazil, opposing Brazilian base interest rate (Selic) increases and demanding abolition of the 6-day work, 1-day rest system. Classified as low-risk peaceful demonstrations with no immediate operational disruptions, but labor policy changes remain the core issue.

2. Supply-chain impact

• Port logistics: Porto Alegre is a major southern Brazilian port city; if union protests expand, potential delays in grain and meat export terminal operations
• Manufacturing production: If demands to abolish the 6x1 work system are realized, automotive and machinery manufacturers face production schedule adjustments and increased labor cost pressures
• Agricultural processing: Rio Grande do Sul is a major soybean and corn production region; labor policy changes could raise operational costs for agricultural processing and distribution companies
• Price chain effects: Combined base interest rate increases and rising labor costs could elevate raw material procurement costs, creating price pressures on global supply chains

3. Watch points

• Protest spread: Monitor whether similar union protests expand to other major industrial cities (São Paulo, Rio de Janeiro, etc.)
• Government policy response: Track Brazilian government progress on 6x1 work system reform discussions and labor law amendment timeline
• Port operations status: Monitor changes in cargo throughput and vessel waiting times at Porto Alegre port