MercoPress, en Español

Montevideo, November 20th 2018 - 07:46 UTC

Brazilian auto industry putting workers on paid leave as production plummets 10%

Saturday, July 26th 2014 - 06:18 UTC
Full article 2 comments
General Motors put 940 workers at the same factory on paid leave in 2012, and the union said 598 of them were later fired General Motors put 940 workers at the same factory on paid leave in 2012, and the union said 598 of them were later fired

General Motors Co wants to put nearly a fifth of its workers at a factory in Brazil on paid leave, an auto workers union said this week, amid falling output in Latin America's largest economy.

 Calling the move “unnecessary,” the union said 1,000 of 5,200 workers in Sao Jose dos Campos, Sao Paulo state, could be laid off. Workers and the Detroit-based auto maker will likely discuss the proposal on Aug. 1, a union leader said.

Brazil's production of cars, trucks and buses is expected to have its steepest decline in 16 years at 10% in 2014 as sales retreat 5.4%, according to national automakers' association Anfavea.

Reducing the workforce is one of automakers' few ways of protecting profits as new factories, weak demand and evaporating exports to Argentina batter profit margins in a market that for years had stood out amid meager global growth.

General Motors put 940 workers at the same factory on paid leave in 2012, and the union said 598 of them were later fired. The factory produced models that have been discontinued, like Meriva and Zarifa, and now makes S-10 trucks and motors.

Germany's Volkswagen put 900 workers in Brazil on paid leave in May and France's PSA Peugeot Citroen started a voluntary leave program for workers in Rio de Janeiro state that same month.

Categories: Economy, Brazil.

Top Comments

Disclaimer & comment rules
  • ChrisR

    Oh yes, that's what fucking around with Mr. Market does for you, especially if you are as stupid as The Liar Mantega and his Bitch Dilma.

    I said this would happen more than six months ago if they didn't stop trying to boss the market.

    Jul 26th, 2014 - 10:59 am 0
  • Klingon

    Same thing is happening here in Arg. Renault put their truck division on standby.
    If the unions didn't keep asking for 30% pay raises every 6 months this may not have happened.
    Paid leave!! WTF. Have them collecting trash off the roads or doing something useful if you are paying them.

    Jul 28th, 2014 - 12:00 am 0
Read all comments

Commenting for this story is now closed.
If you have a Facebook account, become a fan and comment on our Facebook Page!