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13 November, 2000As strike begins, unions are demanding a minimum wage hike of 10 per cent.
BRAZIL: Auto industry workers from both IMF Brazilian affiliates, the CNM-CUT and CNTM-Força Sindical, began a large-scale strike over wage demands and covering the entire state of São Paulo - the heartland of Brazil's auto industry - yesterday, November 13.
Some 55,000 car and truck assembly workers have halted production at plants belonging to Ford Motor Co., Volkswagen, General Motors, Toyota and Scania, with altogether approximately 200,000 workers involved in the dispute, which includes workers from the associated auto supplier producers.
The trade unions are pressing for a minimum 10 per cent wage increase, while employers are offering between 6.5 and 8 per cent. As auto industry workers have not had a real rise in wages since 1994, and with the rate of inflation at 6 per cent for the business year ending September 2000, the unions are not ready to accept management's offer.
A 24-hour warning strike by some 60,000 autoworkers was held last Tuesday, November 7. Unions were claiming a 20 per cent wage hike, but said they would settle for 10 per cent. Short of that, workers would down their tools from November 13 for an undetermined length of time.
The region of São Paulo accounts for approximately 65 per cent of vehicle output in Brazil, Latin America's No. 1 vehicle manufacturer and No. 12 worldwide.
Some 55,000 car and truck assembly workers have halted production at plants belonging to Ford Motor Co., Volkswagen, General Motors, Toyota and Scania, with altogether approximately 200,000 workers involved in the dispute, which includes workers from the associated auto supplier producers.
The trade unions are pressing for a minimum 10 per cent wage increase, while employers are offering between 6.5 and 8 per cent. As auto industry workers have not had a real rise in wages since 1994, and with the rate of inflation at 6 per cent for the business year ending September 2000, the unions are not ready to accept management's offer.
A 24-hour warning strike by some 60,000 autoworkers was held last Tuesday, November 7. Unions were claiming a 20 per cent wage hike, but said they would settle for 10 per cent. Short of that, workers would down their tools from November 13 for an undetermined length of time.
The region of São Paulo accounts for approximately 65 per cent of vehicle output in Brazil, Latin America's No. 1 vehicle manufacturer and No. 12 worldwide.