20,000 Volkswagen Workers Stop in Brazil to Protest Cuts

Brazzil Magazine covers

More than 20,000 workers in Brazil walked off their jobs, halting assembly lines at the three Volkswagen Brazilian factories – two in the southeastern state of São Paulo and one in the southern state of Paraná – that have a combined daily output of 2,500 vehicles.  

The company declined to comment on the amount of lost revenue the strike is expected to cause.

Unions representing autoworkers at the three plants say Volkswagen intends to fire close to 6,000 workers as part of a plan to cut labor costs by 25%.

Volkswagen has declined to say how many jobs will be cut but the company has acknowledged that the plan, announced in early May, includes the dismissal of "thousands of workers."

In announcing the cost-cutting plan the subsidiary’s president Han-Christian Maergner said that a 25% reduction in labor costs did not necessarily translate into a 25% reduction in the company’s work force.

Workers at Volkswagen’s truck- and bus-production plant in the state of Rio de Janeiro and its engine factory in the city of São Carlos, São Paulo state, did not join the strike.

Volkswagen’s press office said the company’s cost-cutting plans did not include the Rio de Janeiro plant and would only have a minimal impact in São Carlos.

Volkswagen employs 21,000 workers at its five factories in Brazil. In 2005, the automaker was Brazil’s leading motor vehicle exporter, shipping 256,494 cars abroad.
 
Pravda – www.pravda.ru

Tags:

You May Also Like

Brazzil Magazine covers

Israeli Drone to Police Rio’s Favelas in Cleaning Up Effort Before Olympics

Starting next month an unmanned "spy" aircraft will overfly the favelas (shantytowns) of Rio ...

Brazzil Magazine covers

Brazil Experts Betting Key Interest Rate Will Fall 0.75% to 15.75%

Brazil’s annualized benchmark interest rate (SELIC), which currently stands at 16.50%, is expected to ...

Brazzil Magazine covers

Stock Market Investors Grow But Investment Shrinks in Brazil

From July to August, the number of natural people investing in the São Paulo ...

Brazzil Magazine covers

Brazil’s Free Zone Reaps US$ 7 Billion in First Quarter

In the first three months this year, revenues posted by companies based in the ...

Brazzil Magazine covers

Brazil’s Paulo Coelho, a Bestseller in Russia, Meets Putin

President Vladimir Putin met with Brazilian author Paulo Coelho, who shared his impressions of ...

Brazzil Magazine covers

US and EU Subsidies of US$ 13 Billion Harm Brazil and Developing Nations

The European Union and the United States are illegally subsidizing their production of corn, ...