TST suspends injunction that prevented auction of Eletrobras distributors

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The Superior Labor Court suspended an injunction that prevented the auction of six Eletrobras distributors (Cepisa, Ceal, Eletroacre, Ceron, Boa Vista Energia and Amazonas Distribuidora), following a request from the Federal Attorney General's Office. The  public auction was scheduled for the day 30.


In the decision, the president of the TST, minister João Batista Brito Pereira, stated that the suspension of the auction would be an affront to the country's order and economy. “Especially if one considers the notorious negative repercussion that the legal uncertainty generated by the contested decision would cause to the privatization process, whether in relation to any interested parties in acquiring the companies, or in relation to the value to be offered”, he says.

Still according to the decision, the B2B Lead first degree court, even recognizing that ILO Convention 158 was not accepted by Brazil, adopted the guidelines it emanated to justify its decision, which, according to the minister, is a circumstance that highlights the fragility of the granted protection.

“On the other hand, there is also a well-founded controversy regarding the jurisdiction of the 49th Labor Court of Rio de Janeiro to hear public civil action in which, in reality, the effects of the privatization process on the employment contracts of company employees are discussed. electricity distributors”, he states.

Granted by the Regional Labor Court of the 1st Region, at the request of unions, the injunction determined that the sale of the distributors be suspended until Eletrobras presented a study on the impact of the operation on the employment contracts of employees of the aforementioned energy companies.



In the request to suspend the injunction, made on Friday (17/8), the AGU highlighted that the distributors are in deficit and needed to receive, over the last 20 years, a contribution of R$30 billion from Eletrobras.