Brazil Stock Guide – Itaú Unibanco Holding SA (B3: ITUB4) and the São Paulo Bank Workers’ Union formally entered into a court-mediated settlement valued at R$130 million (US$23 million) to resolve a dispute over the mass layoff of more than 1,000 home office and hybrid employees carried out on September 8. The agreement, reached through mediation before the 2nd Regional Labor Court (TRT-2), will be submitted for ratification by employees in an assembly on Thursday, October 9.
The settlement grants up to ten additional monthly salaries, a fixed R$9,000 payment, a 13th food allowance, and maintains preferential mortgage rates for Itaú employees with housing loans. The bank also pledged not to discontinue its telework model, one of the union’s main demands following the mass dismissals.
Union representatives said the layoffs were unilateral and carried out without collective bargaining, relying on opaque monitoring metrics that led to dismissals of high-performing workers. The dispute sparked public protests, partial strikes, and direct negotiations, eventually leading both sides to accept judicial mediation.
“After a month of mobilization, we secured a proposal that we consider positive for the dismissed workers, even as we reaffirm our indignation over how Itaú handled the process,” said Neiva Ribeiro, president of the São Paulo Bank Workers’ Union and coordinator of the National Bank Workers’ Committee.
Valeska Pincovai, director of the Itaú Workers’ Organization Committee (COE Itaú), said the bank agreed to review cases involving pregnant employees and those on medical leave, assessing each individually. “We wanted reinstatement, which wasn’t achieved, but we leave with recognition of what happened and tangible reparations,” she said.
The settlement applies to employees with less than two years at the bank — entitled to four monthly salaries, plus the fixed payment and benefits — and to those with two or more years of service, who will receive six salaries plus half a salary per year worked, capped at ten. Participation will be individual, with union assistance, and must occur within six months of ratification.
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