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24 October, 2001The company says pay and work hours must be cut or jobs will go.
BRAZIL: The giant transnational automaker Volkswagen announced on October 23 that it might cut 3,000 jobs at its São Bernardo do Campo plant, near São Paulo. The company, which is Brazil's biggest car manufacturer, warned that with the present decline in sales and the slowing economy, unions must accept management plans to cut salaries and working hours by 20 per cent or the layoffs will take place.
The union representing the VW workers, Sindicato dos Metalurgicos do ABC, a member of the IMF-affiliated National Confederation of Metalworkers (CNM/CUT), has said it is prepared to negotiate more flexibility in working hours but will not agree to pay cuts.
The São Bernardo do Campo plant, with 16,000 employees, is the German-based carmaker's largest production facility in Brazil.
VW did not rule out similar measures for its plant in Taubate, which employs 7,000 workers. The company is also considering outsourcing some activities and introducing lower starting wages.
As of September 2001, vehicle sales in Brazil were down 22 per cent from a year earlier.
The union representing the VW workers, Sindicato dos Metalurgicos do ABC, a member of the IMF-affiliated National Confederation of Metalworkers (CNM/CUT), has said it is prepared to negotiate more flexibility in working hours but will not agree to pay cuts.
The São Bernardo do Campo plant, with 16,000 employees, is the German-based carmaker's largest production facility in Brazil.
VW did not rule out similar measures for its plant in Taubate, which employs 7,000 workers. The company is also considering outsourcing some activities and introducing lower starting wages.
As of September 2001, vehicle sales in Brazil were down 22 per cent from a year earlier.