MercoPress. South Atlantic News Agency

GM Brazil shuts complex before tough negotiations with Metalworkers union

Union leaders fear a major layoff and prepare to battle for jobs

General Motors said Tuesday it had suspended output at its complex in Brazil and sent workers home with paid leave ahead of tense talks with unions and government representatives.

The move at the Sao Jose dos Campos complex near Sao Paulo -- which makes pickup trucks, engines, as well as Corsa and Meriva cars -- comes after a 24-hour strike there on July 17 in protest of alleged plans by GM management to cut up to 2,000 jobs due to difficulties facing a production line making older models.

In a statement, GM said a new round of negotiations with the Metalworkers Union and the government was scheduled for Wednesday. Ahead of the talks, workers should stay home and “await new instructions,” it said.

“The purpose of the decision is to protect the physical integrity of the employees while discussions continue with union representatives in relation to the viability of one of the plants at the complex,” GM Brasil said in a statement.

“The company took into consideration strong evidence – in recent hours and days – of internal mobilization at the plant and understands that the current moment is delicate and prefers not to expose its employees to incitement and provocations” added GM Brasil.

The Metalworkers Union called the decision “anti-democratic,” claiming it violated Brazilian law.

“This attitude only increases insecurity among workers and clearly exposes the car maker's plan to carry out massive layoffs and prevent resistance by the workers,” it said in a statement that urged the government to take a firm stance toward GM.

Last week, the US automaker insisted it had made no decision on layoffs or on shutting down production at the struggling line in Sao Jose dos Campos, a city of 640,000 people located 80 kilometres from Sao Paulo. The municipal government sent police to the site to prevent acts of vandalism during the negotiating process.

Brazil's current economic slowdown has generally put a damper on nationwide auto sales, which fell 1.2% in the first half of 2012, compared to the same period last year.