BRAZIL: Volkswagen workers reject layoff plan - report

By just-auto.com editorial team | 19 September 2003

Reuters reports that workers at the Brazilian unit of Volkswagen have rejected proposals from the management to reduce its Brazilian work force by nearly 4,000 through voluntary layoffs or retraining.

At two plants, autoworkers agreed to enter a state of alert that could lead to a strike, according to Reuters.

The metal workers' union voted to demand that Volkswagen extend job security until 2009 rather than adhere to the carmakers' plan to shed roughly 16 percent of its total work force in Brazil. Previously they had asked for job security until 2006.

Earlier this week Volkswagen offered a voluntary layoff program to its workers as an alternative to a previous plan to transfer nearly 4,000 employees to a company for retraining and to help them find other jobs.

The number of workers who take the voluntary layoff offer would have gone towards the total 4,000 reductions in the work force that Volkswagen is aiming for.