GM and the Brazilian labor union have agreed to postpone the decision to lay off 1,840 employees at Sao Paulo plant.
The Brazilian government has offered auto makers some privileges, such as tax cuts, if they agree to preserve jobs at the plants in this country. GM’s decision to lay off 1,840 employees would have made the company lose these privileges. After tense talks with the government GM decided to postpone its decision until November.
“We give fiscal incentives and we want something in return: stable employment,” President Dilma Rousseff said last week.
On Saturday, August 4th, the talks between GM and the Union lasted 9 hours, and Luiz Moan, GM’s head of institutional relations in Brazil, declared that the company will continue the negotiations on the workers’ labor agreement in the following months. GM considered closing the facility, and would have been the eighth closed plant at the complex in São José dos Campos.
From the total of 1,840 employees that risk losing their jobs, GM will keep 900 on the assembly line and the rest of them will still get their salaries while being trained for other jobs.