General Motors has reversed its decision to cut 450 jobs at a Brazilian plant after employees threatened to go on strike to protest the layoffs, a workers union told Reuters on Thursday.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
The news agency said the cuts, announced on Tuesday, would have affected GM’s factory in Sao Jose dos Campos in Sao Paulo state, which employs about 8,500 workers.
According to Reuters, the Sao Jose dos Campos Metalworkers Union, which led the talks with GM, said that, as part of the deal, the 450 employees will take holiday for five months during which they will receive 90% of their gross salary the first month and 80% the remaining four months.
Citing the union, Reuters said GM also promised to ensure job stability at the plant during the five months. In case it still needs to lay off workers at the end of the period, it will pay each employee three months of wages, the report added.
Workers at a Brazilian VW plant where the company wants to slash 4,000 jobs have also threatened to strike if VW does not abide by contracts that ensure jobs until 2004 and 2006 for some of its employees, Reuters noted.
