On 18 March 2025, in Brasilia (Distrito Federal), members of CUT and other labor unions gathered in front of the National Congress 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, labor union federations including CUT held peaceful demonstrations in front of the National Congress in Brasília, Brazil's capital, opposing interest rate (Selic) hikes and demanding the abolition of the 6-day work week. Currently classified as a low-risk peaceful assembly with no immediate logistics disruptions, this represents an expression of demands for changes to Brazil's economic policy and labor environment.

2. Supply-chain impact

• Brasília region - Potential temporary delays in metropolitan transportation, but logistics impact is limited as major freight routes and ports are distant
• Agricultural exports - Considering Brazil's role as a major global supplier of soybeans, corn, sugar, and coffee, concerns about potential impact on agricultural productivity and export schedules if labor disputes spread
• Manufacturing sector - If demands to abolish the 6-day work week spread, expected production schedule adjustments and labor cost pressures for automotive, steel, and other manufacturing companies
• Financial/monetary policy - Interest rate policy change demands may indirectly affect Brazilian real volatility and imported raw material costs

3. Watch points

• Labor dispute expansion - Need to track follow-up protest plans by major unions including CUT and expansion trends to other major cities (São Paulo, Rio de Janeiro)
• Government policy response - Monitor changes in the Brazilian government's stance on interest rate policy and labor law reforms and their impact on future labor relations and economic stability