Metal workers from General Motors approve suspension of labor contract

Metal workers from automobile manufacturer General Motors (GM) in the city of São José dos Campos, São Paulo, have approved the layoff plan (temporary suspension of labor contract) presented by the company. The decision was made on Tuesday (Aug 26) during a meeting with around 2,500 employees.

The measure reflects the current situation faced by the Brazilian automotive industry. Production floors are full and sales are on the wane at at least 11 manufacturers, like GM, which have announced plans to reduce the output in the country.

According to the trade union, after the approval of the layoffs, GM may suspend the labor contracts of at least 930 employees for five months, from September 8 to February 7 2015, with a 5-month guarantee of employment for after the worker returns to the company from the suspension. They are also entitled to profit sharing and gains from the salary plan for 2014.

The suspension stipulates that workers stay home and are still paid. Part of the salary ($571) will be paid by the federal government, and the rest will be afforded by GM. However, it will be mandatory for the employees covered by the plan to take part in training programs.

Translated by Fabrício Ferreira