IBM Faces Discriminatory Hiring Accusations In Brazil

IBM employees in Brazil are challenging the tech company’s classification of them as sales workers rather than tech workers, according to Rest of World.

Legal Battle for Recognition

A legal battle in Minas Gerais set a precedent in 2018 when a regional court ruled in favor of the IT workers’ union. 

The court ordered IBM to acknowledge the union as the legal representative of its employees in the state, recognizing them not as sales personnel but as tech workers. 

This changed the benefits these employees could access, including a reduced workweek and additional financial perks such as overtime pay and year-end bonuses.

Following this, unions in other Brazilian states are now also suing IBM and seeking similar recognition. 

These suits could create a wave of legal challenges for IBM nationwide.

Discriminatory Hiring Practices?

Adding to the controversy, IBM’s decision to exclude Minas Gerais residents from applying for remote jobs in Brazil has sparked further discontent and legal scrutiny.

IBM posted an ad for a remote job in Brazil last September, stating that for institutional reasons, IBM would not hire Minas Gerais residents, even though it was a remote position.

The exclusion came directly after the lawsuit loss, leading to accusations of discriminatory hiring practices against IBM. 

The Public Labor Prosecution Office in Minas Gerais has taken action by filing a public civil action suit against IBM, demanding $3.9 million in compensation for what they describe as collective moral damages.

IBM maintains that these claims are baseless and insists it does not engage in discriminatory practices.

In a statement to Rest of World, the tech company said it “opposes discrimination in all its forms and continues to actively hire throughout Brazil, including in Minas Gerais.”