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16 November, 2000Labour court rules in favour of workers' wage demands.
BRAZIL: Taking employers by surprise, the São Paulo Regional Labour Tribunal has decided in favour of wage demands made by unions representing workers in the auto industry of the state of São Paulo. On Thursday, November 16, the labour court ruled that workers were entitled to a 10 per cent increase in pay.
The decision could see the end to a large-scale strike organised by the IMF's Brazilian affiliates, the CNM-CUT and CNTM-Força Sindical, which began on Monday, November 13, and halted the production of an average 4,500 vehicles a day at Ford, General Motors, Volkswagen, Toyota and Scania.
Unions had originally claimed a 20 per cent hike in pay, and lowered their bid by half, but employers -- the National Vehicle Manufacturer Association (Anfavea) -- offered 6.5%, which barely covered inflation at 6.7% for the 12 months ending October 2000.
In addition to approving the wage demands, the São Paulo court ruled that the auto companies had to pay workers for the days they were out on strike, as well as guarantee them job security for 90 days.
The unions hailed the court's decision and may recommend an end to the strike today, November 17. However, should the Anfavea appeal the court's ruling, the unions will down their tools again.
The decision could see the end to a large-scale strike organised by the IMF's Brazilian affiliates, the CNM-CUT and CNTM-Força Sindical, which began on Monday, November 13, and halted the production of an average 4,500 vehicles a day at Ford, General Motors, Volkswagen, Toyota and Scania.
Unions had originally claimed a 20 per cent hike in pay, and lowered their bid by half, but employers -- the National Vehicle Manufacturer Association (Anfavea) -- offered 6.5%, which barely covered inflation at 6.7% for the 12 months ending October 2000.
In addition to approving the wage demands, the São Paulo court ruled that the auto companies had to pay workers for the days they were out on strike, as well as guarantee them job security for 90 days.
The unions hailed the court's decision and may recommend an end to the strike today, November 17. However, should the Anfavea appeal the court's ruling, the unions will down their tools again.