Impact: GM suspends output at Brazil complex image

General Motors said Tuesday it had suspended output at its manufacturing complex in Sao Jose dos Campos , where workers on one assembly line have gone on strike.

GM declined to comment on whether the suspension would last more than one day.
GM said in a statement that it suspended manufacturing to ensure the safety of the facility’s 7,500 employees. Workers at the plant walked off the job one day last week to protest expected job cuts.

“The company took into consideration strong evidence – in recent hours and days – of internal mobilization at the plant and understands that the current moment is delicate and prefers not to expose its employees to incitement and provocations,” GM Brasil said.

The company asked employees to “remain calm and await new instructions.”

The Sao Jose dos Campos metalworkers union says in a statement the shutdown is a “lockout” and that it is “clear mass dismissals could be announced at any moment.”

The Metalworkers Union also released a statement, calling today’s production suspension “undemocratic” and saying it violated Brazilian laws that prohibit employers from locking out their employees, reported Reuters.

AFP also reported that GM insisted last week that it had made no decision about layoffs or shutting down the São José dos Campos plant’s production.

Earlier this month, GM ended production of one of the four vehicles it made on the assembly line in question. Since May, about 350 of the 1,500 workers on the line have accepted buyouts.