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Car production resumes in Sao Paulo

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15 October, 2001Strikes are suspended as carmakers agree to resume wage talks.

BRAZIL: After six days of industrial action in Sao Paulo's auto industry, which began on October 8, the metalworkers' union Sindicato dos Metalurgicos do ABC has accepted to suspend the walkouts after carmakers agreed to return to the bargaining table and resume wage talks. The companies involved are the local units of Volkswagen, Ford, Scania, Toyota and DaimlerChrysler's Mercedes Benz.
Car assembly workers are demanding an immediate pay increase of 7 per cent, representing the cost-of-living increase over the last 12 months, and the auto companies, which originally said they would only go as far as 5 per cent, are now indicating they might go beyond that figure.
A spokesman for the IMF-affiliated National Confederation of Metalworkers (CNM/CUT) has said that the rotating work stoppages would continue, however, at the region's autoparts plants, where employers are offering less than 5 per cent.
The Sindicato dos Metalurgicos do ABC is a member of the CNM/CUT and one of Brazil's most powerful trade unions.