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Dismissals cancelled at DaimlerChrysler Brazil

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1 September, 2002After strong opposition to job-cutting plans by the transnational automaker, workers and their union reach agreement with management.

BRAZIL: Well-organised resistance to a plan announced on August 16 by DaimlerChrysler to dismiss outright 656 non-production (indirect and white-collar) staff at the company's Sao Bernardo do Campo plant has brought a historical victory to the workers and the ABC Metalworkers' Union. Following work stoppages in three different departments of the company on August 21, 23 and 26, management agreed to cancel its plan to proceed with the dismissals, and a new proposal - a voluntary job-quitting programme over the period September 2-17, offering certain additional benefits - has been accepted by all 5,500 non-production workers. On September 18, a joint meeting between the union and works council with management will evaluate the situation and propose alternatives, if the target number of 570 jobs has not been reached. In its restructuring plan, the company intends to discontinue the development of new products, to outsource activities and combine operations between departments. The ABC Metalworkers' Union is a member of the CNM/CUT, affiliated at international level to the IMF.