1978–1980 ABC Paulista strikes

[1] The import substitution industrialization development model, predominant since the end of World War II, had lost its dynamism, and between 1963 and 1967 Brazil's economic growth decreased by half.

[1] After the 1964 coup, Castelo Branco appointed notable liberals to direct economic policy, among them Octavio Gouvêa de Bulhões and Roberto Campos.

[4] This wage restraint was an important element in the subsequent conjuncture of economic growth,[5] which had as one of its characteristics the increase of income concentration, benefiting mainly the urban middle and upper classes.

[5] The fiscal, credit and labor reforms were considered necessary to overcome the inflationary problem and create adequate conditions for the private sector to promote the resumption of economic development under Branco's leadership.

Thanks to the concentration of income and financial mechanisms which facilitated the expansion of consumer credit as well as new demand thanks to the liberalization of international trade and to export subsidization, and a significant influx of foreign resources that complemented domestic savings, inflationary pressure was eliminated and the nation's import capacity became highly elastic.

[9] The turbulent scenario generated by the oil crisis in 1973, however, brought with it a long period in which the world economy remained much more hostile to the growth of developing countries such as Brazil.

[10] In 1974, the trade balance deficit reached about 4.5 billion dollars, with a high number of imports and low exports due to the conditions of the international market.

[12] The military regime manipulated the inflation rates in 1973, masking the true cost of living and harming salaried workers by doing so,[13] this was one of the main motivators of the strike movement started in 1978.

Ernesto Geisel succeeded Emílio Médici in a period of adjustment and redefinition of priorities, severe foreign debt, performance fluctuations, inflationary difficulties and recession, and the Brazilian Democratic Movement (Movimento Democrático Brasileiro - MDB), the only political opposition party, grew and won a significant electoral victory in 1974, gathering around itself several sectors of organized civil society in favor of the regime's opening.

A process of transition to democracy was slowly initiated, which should include basic guarantees for the regime, avoiding the return of pre-1964 political leaders, institutions and parties.

[16] Faced with demands for reforms and shaken by growing tensions within the government supporting alliance, in 1979, with the inauguration of João Figueiredo, the regime would undertake a process of amnesty and restoration of democratic institutions.

[21] After the military coup, many unions suffered intervention and lost their potential to claim, once the State became responsible for defining the rates of wage increases, and Law No.

[24] At Villares Metals S.A., in 1973, a strike of unique characteristics occurred, where the workers carried out a pendular movement of paralysis and resumption of work, leaving the employer unable to prevent its outbreak.

[27] In the following year, for the first time, the union obtained some claims in the Superior Labor Court (Tribunal Superior do Trabalho - TST), valid for the metalworkers of São Bernardo do Campo and Diadema;[27] and held the II São Bernardo Metalworkers Congress, reaffirming and deepening some of the guidelines raised in the last Congress, in 1974, as the right of free negotiation between employers and employees, the reduction of the working hours, recognition of the union delegates and the organization of factory commissions.

[29] Faced with the refusal of the businessmen and the State to negotiate the replacement, ratifying the official indexes in agreement with the Metalworkers' Federation, workers from several factories went on strike.

[34] At Ford, in São Bernardo, the movement began on May 15, started by the machining and tooling workers, and later reached from the engine manufacturing sector to the painting section, paralyzing the entire production for a week.

As they did not receive a favorable answer from the company's management, they stopped the work, demanding a 20% salary increase, an improvement in the food and medical system, and a reduction in the transportation costs.

[35] On March 18, the Regional Labor Court (Tribunal Regional do Trabalho - TRT) decided for the illegality of the strikes, however, the strike movement still reached a significant number of metallurgical industries in the ABC Paulista, among them Mercedes, Chrysler, Villares, Brastemp, Pirelli, Cofap, Philips, Otis, General Electric, among other large, medium and small companies,[36] also finding repercussions in São Paulo, reaching Toshiba, Hyster, Orniex, Brasprensas, among others.

The São Bernardo Metalworkers Union responded by advising the workers not to work overtime, thus avoiding an increase in production, and to be careful with the bosses, foremen and supervisors.

[44] On March 13, on the eve of the inauguration of General João Figueiredo as President of the Republic, and after an assembly rejecting the employers' proposal, the ABC metalworkers went on strike.

Besides Ford and Volkswagen, workers from Mercedes-Benz, Brastemp, Villares, Schuler, Vulcanus, Buffalo Motors, Saab-Scania, Chrysler, Cima, Cofap, Otis, General Electric, among other small, medium and large companies, also joined the strike on the first day.

[46] The movement also found repercussions in the interior of the state, with strikes in São José dos Campos, Caçapava, Jacareí, Jundiaí, Campinas and Santa Bárbara d'Oeste.

[47][48] The Ministry of Labor, in turn, ordered the investigation of incitement and infiltration accusations in the strikes, while the bosses carried out several reprisals against the strikers, denying the concession of vouchers to workers, threatening dismissals and hiring replacements.

[49] After the creation of the strike fund, a national campaign of solidarity with the strikers was initiated, through the collection of financial resources and food for the paralyzed workers, which had the strong support of the Church.

There would also be a discount of 50% of the paralyzed days, in five equal and successive installments starting June 10, while the other half would be settled directly between the workers and the companies, not being computed for vacation, 13th salary and paid weekly rest periods.

As a result, the links with the associations provided the beleaguered militants with a reliable connection to the bases to obtain information regarding the level of commitment and material needs of the strikers.

[74] On that same day, in São Bernardo, there was a fierce confrontation between metalworkers and police troops, which lasted several hours, after the assembly held in the morning, in the mother Church, decided once more to continue the strike.

[74] A commission composed of union members Jacó Bittar and João Paulo Pires de Vasconcelos and Bishop Cláudio Hummes went to Brasília to contact the authorities for this purpose.

The union leaders remained in prison for a few more days, when an appeal presented by the lawyer from the Brazilian Amnesty Committee (Comitê Brasileiro pela Anistia - CBA) managed to get the preventive detention relaxed.

[69] The massive employment of military police against the strikers, the arrest of their leaders on charges of undermining the National Security Law, and the occupation of union headquarters resulted in a decline in strikes during the latter part of the year.