Brazil’s Varig Fired Workers Vow to Fight in Court “Plunder” by New Owners

Brazilian flag carrier Varig, which was recently sold to VarigLog, a former subsidiary, announced Friday that it will lay off 5,500 workers as part of a broad restructuring plan.

According to a press release issued by the airline, in making the move the company is adapting to "real current operational needs". The release adds the company will "retain 3,985 employees out of a total of 9,485 in Brazil".

í‰lnio Borges, president of Brazilian National Union of Aircraft Workers (Sindicato Nacional dos Aeronautas) has informed that Varig’s workers intend to appeal to the courts to have their rights protected.

Borges classified as "absurd" Varig’s action to fire so many people (5,500) at once.

"From our point of view this is even an act of cruelty because Varig’s workers for years have been putting lots of effort to keep the company flying amid all its difficulties. In the latest months they didn’t even  have a salary and they had to face the legitimate wrath of the public who was getting bad service," the union leader said, adding:

"Now that the company is practically given way to a super rich new owner, sustained by a huge foreign investment fund, instead of paying the late salaries, they decide to drastically reduce the number of workers."

Borges called the action by Varig an "spoliation of workers right" and assured that his union and the workers are not going to take it passively.

According to him, the new Varig is sending former workers home without paying them a cent, although the company hands them a guide explaining how they can receive unemployment insurance and their FGTS (Fundo de Garantia por Tempo de Serviço – Guaranteed Severance Fund), a Social-Security -like benefit.

Varig admitted there’s "a commitment to gradually re-hire redundant staff depending on the pace in which the airline’s fleet is restored and the consequent expansion of the national and international routes."

The company said it will maintain its current operations, which are for the moment limited to flights among the Brazilian cities of São Paulo, Rio de Janeiro, Porto Alegre, Fortaleza, Salvador, Recife and Manaus.

Varig also runs daily flights to Frankfurt, Germany, and Buenos Aires and on alternate days to Miami and New York.

The company estimates that the layoffs will cost an estimated US$ 116 million. Varig must also meet another US$ 50 million payment in arrears through July, according to the Brazilian press.

Varig, which until three months ago ran 70% of all international flights originating in Brazil, currently operates with just 10 aircraft.

Saddled with debts of some 3 billion US dollars, the air carrier was acquired at public auction last Thursday by VarigLog, the company’s former cargo subsidiary, for US$ 24 million.

Mercopress, Bzz

Tags:

You May Also Like

Chavez Says in Brazil, that Bush Doctrine Can Destroy World

Venezuelan President Hugo Chavez was warmly received at the 2005 edition of the World ...

In Brazil, Criminals Are Our Heroes and Saints

On the day of drug lord Lulu’s death, businesses in Rocinha closed as a ...

Time for Reform

Immobilism and stalemate are inappropriate terms to describe Brazilian politics today. The political process ...

Will the US Ever Comply with the WTO? Brazil Wants to Know.

The United States has still not complied with a World Trade Organization ruling that ...

A Recipe to Lower the Risk Brazil

Brazil’s President Luiz Inácio Lula da Silva once again emphasized the importance of Brazil’s ...

Brazil: Lula Still Disappeared from Sí£o Paulo Scene

After the speculation about whether or not President Lula will be supporting his party ...

Ecobusiness Is Good Business, Says Brazilian Bank

Brazil’s Minister of Environment, Marina Silva, signed a protocol of intentions yesterday with the ...

Brazil Favors Participation of Mercosur Countries in State Bids

The Brazilian Minister of Foreign Relations, Celso Amorim, says he is in favor of ...

Brazil Sells Arabs US$ 2.1 Billion in Agricultural Goods, a 15% Boost

Brazilian agribusiness exports to the Arab countries yielded US$ 457.4 million in July, a ...

Lula Is Ahead in the Polls. This Time Around Brazilian Markets Cheer.

Latin American stocks advanced, with Brazilian shares getting a boost from robust local retail ...