According to a Reuters report, metalworkers at a Volkswagen AG plant in southern Brazil are threatening to join a strike already halting production at other car plants in the country.
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Reuters reported that a union spokeswoman said some 2,600 employees at the Volkswagen Sao Jose dos Pinhais plant were demanding a one-off bonus of 500 reais ($166) to compensate for a sharp surge in inflation late last year that cut the workers’ buying power.
Reuters reports that although the management at the plant have agreed to the sum, they have offered to make payment in five monthly instalments, which the union opposes.
A GM plant and a Renault plant in Brazil are being affected by similar disputes with production halted since Tuesday of this week.
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.
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