GM Delays Brazilian Firings Until November, Starts Jobs Bank

Bertel Schmitt
by Bertel Schmitt
gm delays brazilian firings until november starts jobs bank

After nine hours of talks with the union, and under considerable pressure from the Brazilian government, GM backed off from job cuts at its São José dos Campos factory near São Paulo. The politically sensitive decision (in Brazil and at home) to eliminate as many as 1,840 jobs was delayed until November.

GM wanted to close down one out of eight assembly lines at the complex. That wasn’t popuar with the unions, they went on strike. It also did not sit well with the Brazilian government. The government had given tax cuts and made imports more expensive, both to prop up domestic production. And now this.

“We give fiscal incentives and we want something in return: stable employment,” President Dilma Rousseff told Reuters. Reuters also explains what will happen to the jobs:

“Of the workers at risk of losing their jobs, GM will keep 900 on the assembly line, the company said. The rest will continue receiving their salaries as they undergo training for other jobs. “

Sound familiar?

Join the conversation
  • Lichtronamo Lichtronamo on Aug 06, 2012


  • Pig_Iron Pig_Iron on Aug 06, 2012

    Past behavior is often a predictor for future outcomes.

  • Seth1065 Seth1065 on Aug 06, 2012

    Any reason why they picked Nov??? This is why Gov Motors is in trouble, I grew up in a GM household ( family only drove GM cars) and I am rooting for them but push comes to shove I buy foreign, This is just GM NA moving south, Manage the business and get out of the move the hard decisions further down the road.

  • Carbiz Carbiz on Aug 07, 2012

    Welcome, Brazil, to the consequences of your actions. I believe the Chinese have already landed in Brazil (they have far more lax safety standards than North America) and I recall seeing at least one SsangYong dealership in Sao Paulo. Lula was convinced that cozying up to the other 3 of the BRIC countries, while ignoring North America, was the ticket to Brazil's future. It's another case of 'what have you done for me lately?' At R2.40 a liter for fuel (over $10 a gallon), small and cheap sells well in Brazil. It doesn't matter that Ford, VW and GM have been there since their creators still walked the Earth, the fickle public will buy whatever is cheapest. With no salt and no cold weather, even Fiats last a long time in Brazil. The Chinese will do well there, then once they command the market in South America, they will be ready for us next. No doubt, GM can see this new trench war beginning (really? if you thought Japan Inc had some pretty heavy ammunition, just wait until a Communist, one-party apparatus throws itself behind their auto industry) and is preparing itself for the onslaught.