Talks between General Motors’ Brazilian unit and labour leaders have broken down without reaching agreement on planned job cuts. More negotiations are planned, however.
Last August, GM and the Metalworkers’ Union reached a deal to delay 1,600 layoffs at Sao Jose dos Campos near Sao Paulo until 26 January. A new meeting is planned for Saturday, the day before the deadline.
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The union has confirmed that it has made new proposals to avert the layoffs and that GM is looking again at the job cuts. It says it is not prepared to accept layoffs.
GM has said it plans to announce major investments in Brazil for the next three to five years and the union believes the Sao Jose dos Campos facility, which has eight plants and employs 7,500 workers, should be a recipient.
The union has urged President Dilma Rousseff to step in to stop the layoffs since GM is benefiting from government tax incentives. Talks with the GM management resumed earlier this week after thousands of auto workers staged a 24-hour protest strike.
The protesters blocked traffic on a road outside the plant.
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