A strike against General Motors Co’s plant in Brazil ended after the car maker agreed to halt 800 job cuts.
GM announced that the workers would be spending the next five months on paid leave instead. They would also get an extra rescission payment if their jobs are cut early next year. The company will also open a voluntary buyout program and the union said it was open to discussions about retirement plans.
“GM believes this is a positive decision, but it does not resolve the competitiveness issues with the Sao Jose dos Campos complex,” the company said in a statement.
Last month GM said its Sao Jose plant would not be included in 6.5 billion reais (US$1.9 billion) of new investments in Brazil through 2019 because the factory is not cost competitive. Labor relations at the plant have deteriorated amid layoffs and a dwindling production lineup.
The walkout, which halted operations at the Sao Jose dos Campos factory starting Aug. 10, was one of the longest strikes at the plant in the past two decades, underscoring the depth of the sector’s current crisis.
Brazilian auto sales are down around 20 % this year as rising inflation, unemployment and interest rates contribute to a slump expected to last through early 2016. Automakers have cut about 10,000 jobs in Brazil in the past year.
Separately on Monday, Daimler AG (DAIGn.DE) said it was cutting an additional 1,500 jobs at a Mercedes-Benz truck plant near Sao Paulo, leading workers to declare an open-ended strike at the factory.