2 December, 2011The Metalworkers' Union of Piracicaba, affiliated to Força Sindical, has just concluded a new collective agreement with Caterpillar management resulting in improved purchasing power and benefits for workers.
BRAZIL: Metalworkers at the Caterpillar plant in Piracicaba, in the State of São Paulo, have secured a 9.5 per cent pay rise at this annual round of negotiations. Given the inflation rate in Brazil, this means a real wage increase of three per cent, thus bringing the average monthly wage to BRL2,800 (US$1,520). The wage floor was also increased by 9.5 per cent to BRL1,064.80 (US$576) and the monthly meal allowance rose by a similar percentage to BRL180 (US$98).
Other improvements include an extension of the maternity leave from 120 to 180 days on full pay and two food vouchers -- the first one amounting to BRL100 (US$54) will be given in April 2012 and the other one of BRL400 (US$216) in December 2012. The profit-sharing clause has been maintained in the new agreement and discussion on its amount will start in 2012.
The Union's President José Luiz Ribeiro welcomed this agreement, stating that industry has everything to gain from motivated workers. "Appropriate wages promote the economy, removing the possibility of a crisis," he added.
The agreement was concluded in November 2011 and is valid for a year. It is part of wider negotiations carried out between the Metalworkers' Union of Piracicaba and the Employers' Association SIMESPI of which Caterpillar is a member. The union had threatened to resort to strike action if management had not agreed to a fair wage outcome.
The Caterpillar's manufacturing site in Piracicaba employs about 5,000 workers. In October 2011, Caterpillar Brazil opened a new plant in Campo Largo, Paraná State, that will produce backhoe and wheel loaders for the domestic market and for export, with a focus on Latin America. The new facility has created 260 direct jobs that are expected to reach 1,000 in 2013.