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21 October, 2001Union achieves a 7.75 per cent retroactive pay hike for inflation and a possible 2 per cent real wage increase.
BRAZIL: The metalworkers' union for the São Paulo region, Sindicato dos Metalurgicos do ABC, reports that car assembly workers have accepted a new two-year collective contract with Volkswagen, Ford, Scania, Toyota and DaimlerChrysler, and have ended the staggered strike action they began on October 8 in defense of their wage claims.
The companies have agreed to pay a retroactive wage hike of 7.75 per cent to compensate for the increase in cost of living over the past year, and if car production reaches 1.065 million vehicles, or an increase of 40,000 units over the year 2000, there will be an additional 2 per cent real wage increase. The new contract, covering approximately 42,000 car assembly workers, also includes renewed fringe benefits for the next two-year period.
The union's president, Luiz Marinho, told the Reuters news agency that "given the current circumstances, the signing of an agreement valid for two years is extremely positive for the workers and for the Brazilian economy." Brazil's auto sales have fallen both on the domestic and export markets due to the present economic downturn.
Represented by another union and thus not included in this agreement, workers at the São Paulo plants of General Motors are expected to be offered a similar deal.
Brazil is Latin America's biggest auto manufacturer, and 70 per cent of the country's car production is concentrated in São Paulo.
The companies have agreed to pay a retroactive wage hike of 7.75 per cent to compensate for the increase in cost of living over the past year, and if car production reaches 1.065 million vehicles, or an increase of 40,000 units over the year 2000, there will be an additional 2 per cent real wage increase. The new contract, covering approximately 42,000 car assembly workers, also includes renewed fringe benefits for the next two-year period.
The union's president, Luiz Marinho, told the Reuters news agency that "given the current circumstances, the signing of an agreement valid for two years is extremely positive for the workers and for the Brazilian economy." Brazil's auto sales have fallen both on the domestic and export markets due to the present economic downturn.
Represented by another union and thus not included in this agreement, workers at the São Paulo plants of General Motors are expected to be offered a similar deal.
Brazil is Latin America's biggest auto manufacturer, and 70 per cent of the country's car production is concentrated in São Paulo.