General Motors to lay off 250 workers in Brazil over shortage of parts

RIO DE JANEIRO, BRAZIL – General Motors (GM) of Brazil has proposed the suspension of the contracts of 250 workers at one of its plants in the state of São Paulo faced with the shortage of parts affecting the automotive sector at a global level, union sources said Tuesday.

According to the Metalworkers Union of the city of São José dos Campos, São Paulo, the automobile giant proposed to suspend the 250 workers between July 12 and August 25, based on an Provisional Measure issued by the Government, which authorizes the suspension of employment agreements for up to 120 days as a result of the coronavirus pandemic.

According to the union, the proposal was made by GM during a meeting held the day before, prompted by the “shortage of parts and components” to assemble vehicles affecting the sector worldwide, although it did not specify which parts.

In an assembly on Tuesday (6), “workers decided that they will only accept the suspension of contracts if the measure is necessarily accompanied by job tenure for all, provided the agreement is valid,” the entity pointed out.

It added that union leaders will meet Wednesday with GM Brazil representatives to continue negotiations and that workers will decide on Thursday whether or not to accept the proposal.

“GM workers have delivered their message: we will not accept any measure that suspends contracts unless everyone’s jobs are guaranteed,” union vice-president Valmir Mariano stressed in the note.

The U.S. company’s plant located in São José dos Campos is responsible for the production of the Chevrolet S10 and Trailblazer pickup trucks and currently employs around 3,800 workers.