Labor unions plan STF challenge against INSS law

After sending a letter to President Lula urging a veto on a bill prohibiting automatic discounts on INSS benefits, labor unions are preparing a Direct Action of Unconstitutionality at the Supreme Federal Court against the law he sanctioned. The effort will involve CUT, Força Sindical, and other groups, with filing planned for February. They claim the measure is unconstitutional for separating retirees from other workers.

The labor unions, including CUT (Central Única dos Trabalhadores), Força Sindical, UGT (União Geral dos Trabalhadores), CTB (Central das Trabalhadoras e Trabalhadores do Brasil), NCST (Nova Central Sindical de Trabalhadores), and CSB (Central dos Sindicatos Brasileiros), along with workers' confederations, plan to file the ADI after the judiciary's recess ends in February.

Valeir Ertle, CUT's national secretary of Legal Affairs, stated that the law separates retirees from other workers, deeming it unconstitutional. "Não tem cabimento. Isso aí é totalmente inconstitucional. Não pode separar aposentado dos demais trabalhadores. Essa lei também pode acabar se voltando contra as entidades sindicais," he said.

Ertle noted that the unions already face financing issues, and the law will worsen the weakening of entities representing retirees. The groups plan to meet to discuss and draft a robust legal piece, coordinating with their legal departments.

The law emerged as a response to frauds in associative discounts from INSS retirees and pensioners. Ertle dismissed fears of backlash, arguing that serious entities operated despite scams by fraudulent groups. "Havia entidades sérias atuando. Alguns erros podiam estar acontecendo, mas algumas das entidades eram sérias. Mas você teve entidades que foram criadas para fraudar, que não tinham nem sequer autorização para funcionar," he explained.

He cited examples like Contag, with 50 years of history, and Contraf Brasil, linked to CUT. "Tem que colocar na cadeia essas pessoas que fraudaram os trabalhadores e a Previdência. É uma coisa horrorosa," he concluded.

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Illustration depicting pressure on Lula's government from Federal Police breaking his son Lulinha's banking secrecy in INSS fraud probe amid chaotic congressional session.
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Lulinha's secrecy break pressures Lula's government

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The Federal Police obtained authorization to break the banking, fiscal, and telematic secrecy of Fábio Luís Lula da Silva, son of President Lula, amid investigations into INSS frauds. The INSS CPI also approved the break in a tumultuous session on Thursday (26), generating tensions in the government ahead of the election campaign. Aides fear impacts on re-election, while the opposition seeks to extend the commission.

The Força Sindical sent a note of repudiation to Minister Guilherme Boulos criticizing the ordinance that created the working group to discuss app delivery regulation. The entity contests the limit to three representatives from union centrals in the body, arguing it excludes part of the working class. The note requests suspension of the current composition until corrections.

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Centrist leaders in Brazil's lower house want to avoid voting on a bill regulating extra perks and supersalaries for public servants unless President Lula's government engages directly. The Supreme Federal Court suspended these benefits and ordered Congress to legislate within 60 days, but the deadline is deemed too short in an election year. The STF plenary is judging the decisions this week.

STF Minister Flávio Dino ruled on Monday (16) that compulsory retirement for judges is unconstitutional after the 2019 Pension Reform, in a specific case. The decision raises questions about its scope and may concentrate more power in the Supreme Court. STJ and CNJ members note a lack of clarity.

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In a joint committee plenary, La Libertad Avanza's officialism secured the majority opinion for the labor reform with 44 signatures, after removing the controversial Article 44 on sick leave. The opposition, led by Unión por la Patria, presented a counter-reform proposing shorter workdays and expanded worker rights. Meanwhile, the CGT called a national strike for February 19 in opposition to the bill.

The Senate approved on Wednesday, December 17, 2025, a bill that cuts federal fiscal benefits by 10% and raises taxes on online bets, fintechs, and interest on own capital. The measure unlocks about R$ 22.45 billion for the 2026 Budget, avoiding cuts in spending and parliamentary amendments. The text heads to presidential sanction after a 62-6 vote.

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At least one Justice servers' entity, a retired prosecutor and a retired judge voiced support for Minister Flávio Dino's STF decision suspending indemnatory payments created by administrative acts. The São Paulo Court of Justice opposes the measure and quadrupled extras to desembargadores in two years. The case heads to plenary on Wednesday (25).

 

 

 

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