Rising labour and tax costs corroded productivity by 0.9% between 1996 and 2010, according to studies presented by Guilherme Guaragna, vice president of operations for Enseada Industrial Naval, the consortium that operates the Estaleiro Inhauma facility in Rio de Janeiro and is also investing 3 billion reais ($1.3 billion) in a new shipyard in Bahia.
Guaragna said the decline has actually accelerated since 2010, saying rising labour costs — representing 15% to 20% of the total - had not been followed by improvements in output.
Overall
