GM, Workers Deal Avoids Brazil Job Cuts

Aug. 5, 2012
Delay cut of 1,840 workers until November

General Motors (IW1000/13) and union representatives in Brazil reached a deal late Saturday to delay at least until November 1,840 possible job cuts at a plant in Sao Paulo state, the union said.

"We reached a deal to delay the dismissal of 1,840 workers that was supposed to take place roughly around this date," a union envoy said after more than nine hours of talks among union representatives, GM staff and government officials.

In addition the deal calls for suspending until November the contracts of 940 workers on the production line in question who will still receive their pay, the union said.

The line will stay open at least until November with 900 people at work. Talk will continue on the future of the production line beyond November.

GM workers have taken to the streets several times in recent days saying they hoped to stop what they called a plan for massive job cuts at the plant located in Sao Jose dos Campos. The complex has eight plants and a total of 7,500 workers.

The union has said GM management made clear its intention to shut down the struggling production line which has already stopped making Zafira, Merica and Corsa models. GM also said it planned no new investment in Sao Jose dos Campos because of "structural adjustments," according to the union.

The union meanwhile estimated that 2,000 layoffs at the GM plant would translate into a total loss of 15,500 jobs across the city of Sao Jose dos Campos.

Copyright Agence France-Presse, 2012

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