A few days after announcing that it will suspend a production shift at the São José Dos Campos plant, General Motors has just reached an agreement with the workers to carry out the measure at the Brazilian facility. The automaker presented a temporary layoff plan that affects a reduced number of employees, which was approved by the São José dos Campos Metallurgical Union.
According to Automotive Business, on October 29th, an assembly of workers at the São José Dos Campos plant approved the temporary layoff plan presented by GM, which seeks to suspend one of the two production shifts on the Chevy S10 pickup assembly line due to the continuing shortage of semiconductors. The agreement includes the suspension of contracts and a guarantee of job security for 700 workers, 500 less than the manufacturer had planned.
“It was only possible to reach this agreement because there was engagement and mobilization of workers in defense of jobs. Without this achievement, there would certainly be layoffs at the factory,” said Valmir Mariano, Vice President of the Metallurgical Union of São José dos Campos, in a statement. “In the face of the crisis, every negotiation has to be conditional on job stability,” he added.
Once approved by the workforce, GM Brazil will apply the temporary dismissal of workers and the suspension of the second production shift at the São José dos Campos plant starting next Monday, November 8th. The suspension of employment contracts can last between two to five months according to local legislation, and can be extended for another five in case the lack of components persists.
GM Brazil guarantees 100 percent of the net salary to the 700 workers during the suspension period, as well as the payment of some essential benefits. In addition, the manufacturer agreed to hire 300 temporary workers at the request of union leaders. The union claims that the São José dos Campos plant is the only GM factory in Brazil in which all workers will have guaranteed stability during the layoff period.
The São José dos Campos plant exclusively manufactures the Chevy S10 pickup and the derived Chevy TrailBlazer SUV, mainly to supply the Brazilian market and a dozen Latin American countries where the vehicles are marketed. As such, the suspension of the second production shift is expected to affect the commercial performance of the midsize pickup, which had recently regained its sales leadership in Brazil.