Volkswagen and Mercedes-Benz announce suspension of workers

Layoff means that these workers will have their contracts temporarily suspended. According to Volkswagen, the layoff will take place in a production shift and will start on August 1, and is expected to last two months. “The flexibility tool is foreseen in a collective agreement signed between the union and Volkswagen employees”, says a note that was sent by the company.

The union says that the layoff can last up to five months and that the automaker informed that the suspension of contracts will be made to adjust the production volume to the market.

“Unfortunately, the interest rate, the Selic, remains at 13.75% and makes the sale of new cars unfeasible, since two thirds of these sales are made through financing. With that, automakers have been facing an accumulation of vehicles in stock in the yards”, said Claudio Batista, Claudião, president of the union, through a note.

According to the union, the Taubaté factory has around 3,100 workers, who produce the Polo Track, the automaker’s new entry-level car.

Mercedes-Benz

Mercedes-Benz reported that it is extending the layoff for workers at the plant in São Bernardo do Campo (SP), “due to the current level of demand for commercial vehicles in the Brazilian market”. According to the automaker, the layoff is for the production of trucks and aggregates and was extended until August 31.

“It is important to clarify that we do not have production completely stopped. We are operating with one shift and adjusting the volumes”, informed the assembler.