According to the metallurgist union in the region, 800 workers will be impacted by the measure
Volkswagen announced on Monday (July 17, 2023) the temporary suspension of workers’ contracts at the Taubaté factory, in the interior of São Paulo. According to Sindmetau (Taubaté Metallurgist Union), 800 workers will be impacted.
In a note, the automaker informed that the layoff will start on August 1st and should last for 2 months. The company did not say, however, the reason for adopting the measure. According to Sindmetauthe suspension of contracts will be made to adapt the production volume to the market.
The union said it had held an assembly with the factory workers on Friday (14.Jul), as soon as it was notified of the layoff. The president of Sindmetau, Claudio Batista, attributed the drop in the sale of new vehicles to the interest rate.
“Unfortunately, the interest rate, the Selic, remains at 13.75% and makes the sale of new cars unfeasible, since 2/3 of these sales are made through financing. As a result, automakers have faced an accumulation of vehicles in stock on the patios“, he spoke.
At first, Volkswagen had announced a layoff for June, but postponed the measure to the following month. After the launch of the discount program for popular cars, he even said that he would not suspend workers’ contracts, but he backed down. From June 26th to July 3rd, the Taubaté factory was paralyzed.
Read the full statement from Volkswagen:
“Volkswagen do Brasil informs that the plant in Taubaté (SP) has filed a layoff for a production shift, starting on August 1, initially lasting 2 months. The flexibility tool is provided for in the Collective Agreement signed between the Union and Volkswagen employees.”
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