About 19,000 GM workers strike at Brazilian plants over pay
Production at General Motors factories in São Paulo state halted as workers demand higher wage increases and bonuses, disrupting output during a peak sales period.
Nearly 19,000 General Motors workers in Brazil walked off the job on 18 September 2009, shutting down two of the company’s main plants in São Paulo state after wage negotiations stalled. The strike affected the São Caetano do Sul factory, which employs about 10,500 people, and the São José dos Campos facility, with a further 8,500 workers, according to union officials.
The industrial action followed a breakdown in talks between GM and local unions over annual pay rises and bonuses. At São Caetano do Sul, workers sought a 10 percent wage increase and a 2,000 reais bonus, while those at São José dos Campos demanded a 14.65 percent pay rise. GM’s counter-offer was a 6.53 percent wage increase and a 1,750 reais (about US$972) bonus, which unions rejected.
The stoppage came at a critical time for Brazil’s car industry. September 2009 was the final month for a full government tax break that had fuelled record car sales and production volumes. Automakers were pushing to meet heightened demand before incentives expired, and any disruption risked missed targets and delayed deliveries.
Wider unrest in Brazil’s car sector
The GM walkout was not an isolated case. On the same day, around 60,000 workers from auto parts and machinery companies in the São Paulo metropolitan area also went on strike over pay. Meanwhile, Volkswagen workers in southern Brazil were already in the 13th day of their own strike, which had caused a reported production loss of 9,800 vehicles. The unrest followed a period of intense negotiation across Brazil’s automotive sector, with unions pressing for wage increases above inflation.
- Volkswagen-Audi plants in Paraná state affected by ongoing strike since 3 September 2009.
- Auto parts and machinery workers in São Paulo metropolitan area joined strike action.
- Renault and Honda workers elsewhere in Brazil accepted wage increases of 8.65% and 10%, respectively.
Some automakers had managed to reach deals with unions. Renault workers in Paraná and Honda and Toyota staff in São Paulo accepted wage increases of 8.65 percent and 10 percent. By contrast, GM and Volkswagen continued to face stoppages, with production lines idle as talks dragged on.
Impact on production and sales outlook
Brazil was the world’s fifth-largest car market by sales in 2009, and the strikes threatened to disrupt what was expected to be a record-breaking year. The national automakers association, Anfavea, forecast a 6.4 percent rise in sales to 3 million vehicles for the year, even as production was set to fall by 5.2 percent due to weaker exports. Any prolonged industrial action risked undermining domestic supply just as buyers rushed to take advantage of tax breaks.
