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Volkswagen workers agree to end strike

New collective bargaining agreement reverses 800 layoffs and improves
Camila Maciel reports from Agência Brasil
Published on 16/01/2015 - 13:51
São Paulo

Volkswagen workers on strike since January 6 decided to return to work after the car maker agreed to re-hire the 800 employees who had been laid off over the Christmas season. They are to return to work on Monday (Jan. 19) as agreed by the workers during a meeting this morning (16).

The workers claim that the layoffs are in violation of a non-termination clause that secured their jobs until April 2017.

In addition to readmission, Volkswagen had to change the Collective Bargain Agreement provisions on wage increase that had been rejected by the workers in December. According to the local auto workers' union, a wage bonus previously outlined in the agreement was replaced by an inflation adjustment based on the National Consumer Price Index.

On Monday (Jan. 12), the workers went on a demonstration against the layoffs, blocking portions of two major highways that run across the state of São Paulo. The following day, union representatives met with the Secretary-General of the Presidency, Miguel Rossetto, to present their employment protection claims. The demands went on to include government agendas such as credit expansion for vehicle purchases and a fleet renovation policy providing incentives for truck drivers to buy new trucks. The company, in turn, agreed to resume negotiations.

The strike started on January 6, the day the workers were to return from their Christmas holidays. It was prompted by company telegram notifications sent over the Christmas season informing the workers that they had been terminated and were not expected to resume work in January.

In a statement, Volkswagen said the final revised collective bargain agreement contains a sound proposal providing a reasonable balance between employment and cost adjustments at the Anchieta plant in São Bernardo do Campo where the layoffs had taken place. According to the company, the resulting arrangement will enable it to proceed with its voluntary severance programs through financial incentives, while also “enabling VW to roll out a new global product and model platform and laying stronger foundations for a sustainable future in our business unit.”


Translated by Mayra Borges


Fonte: Volkswagen workers agree to end strike