Metalworkers went on strike indefinitely on Tuesday at General Motors and Renault car plants in Brazil, halting production at both sites, Reuters reported.
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Some 5,000 workers at GM’s Sao Jose dos Campos plant and another 2,500 at Renault’s Sao Jose dos Pinhais factory launched the strike to push for higher wages to compensate for rising inflation, union officials told the news agency.
In addition to a 10.38% wage increase, GM workers are demanding their work week be cut to 36 hours from 40 hours while creating an “inflation clause” that guarantees a pay raise every time consumer prices jump more than 3%. At the Renault plant, union leaders are pushing for a 14.61% wage increase, Reuters said.
Officials at both companies confirmed the strikes to Reuters, but declined further comment.
Reuters said GM’s Sao Jose dos Campos plant produces the Corsa model, the Meriva and Zafira minivans, and the medium-sized S-10 pickup truck. The factory also assembles engines.
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By GlobalDataThe Renault plant produces the Clio sedan model, the Scenic minivan, the Master van and the Nissan Frontier truck, in addition to engines, Reuters noted.
Some 640 cars and 1,600 engines are churned out on a daily basis at the GM plant and 340 vehicles and 900 motors come from the Renault factory, the companies told the news agency.
Reuters said GM also has factories on the outskirts of Sao Paulo in Sao Caetano do Sul and in the southern state of Rio Grande do Sul, but the strike was limited to the Sao Jose plant. In all, GM employs 17,000 people in Brazil, the report added.
Reuters said the strike is the second major walkout by factory workers under the new centre-left government of President Luiz Inacio Lula da Silva, himself a former metalworker and union boss. Lula, who took office on January 1, has distanced himself from the disputes, urging the parties to negotiate a quick solution, Reuters said.
In late March, tens of thousands of metalworkers at more than 80 vehicle parts plants in the industrial hub of Sao Paulo staged a three-day walkout, but returned to work after winning pay raises to compensate for an inflationary spurt last year, Reuters noted.
