Carmakers carry out temporary layoffs to prevent dismissals

The Metal Workers' Trade Union of the city of São Bernardo, in São Paulo state, announced Friday that 2,357 employees at the Volkswagen plant will have their work contracts suspended for five months starting on Monday (Jul 6). Data from the trade organization indicate that 221 employees are currently facing the problem at the car manufacturer.

Behind this scenario lies a drop in sales. Last year, Volkswagen's output rate stood at 1.4 thousand vehicles a day, down to 800 in 2015. Of the plant's 11 thousand employees, 8 thousand work in production. With contracts suspended, workers are paid their full salaries, with half the amount from the Workers' Support Fund (FAT in the original Portuguese acronym), and half from the company itself. According to labor leaders, Volkswagen has also canceled the night shift, relocating some 1.8 thousand workers to other working hours. An agreement, mediated by the unionists, prevents those employees from being sacked before 2019.

Another automaker facing problems is Mercedes-Benz. The firm brought forward a proposal cutting down 20% of working hours and 10% of salaries, which would ensure all autoworkers' employment up to 2019, as well as the return of some of the 300 workers fired. The workers, however, voted down the proposal, bringing talks to a halt.

Volkswagen's press office declined comment on the matter. In a note, the Brazilian Mercedes-Benz unit said they have proposed to preserve metal workers' jobs at the plant in São Bernardo do Campo until 2016.

Translated by Fabrício Ferreira