Toyota employees ratify temporary layoff proposal, union reports

Toyota employees ratify temporary layoff proposal, union reports

SAO PAULO: Toyota workers in Brazil overwhelmingly voted Sunday to ratify a plan for temporary dismissals after storm damage to one of the Japanese auto maker’s plants in the Sao Paulo state, a statement by the workers union said.

Toyota employees ratify temporary layoff proposal, union reports
Toyota employees ratify temporary layoff proposal, union reports

The heavy rain and wind on September 22 heavily damaged Toyota’s Porto Feliz factory, a plant where engines are produced, forcing the company at first to suspend output there and at its Sorocaba plant, where cars such as the Yaris, Corolla and Corolla Cross are put together.

The union stated the layoff scheme is to preserve jobs and workers’ incomes at the facility. It further stated that the layoff period would commence on October 21 after a 20-day emergency vacation period which would commence on Wednesday, and that the layoff arrangement could be extended every month up to 150 days.

Toyota indicated Sunday it is still evaluating damage at the Porto Feliz plant, noting it will likely be months before production can be restarted at the factory.

Toyota employees ratify temporary layoff proposal, union reports

“Considering the circumstances, the company is negotiating alternative engine providers from Toyota plants in other countries, with the intention of restarting vehicle production at the Sorocaba and Indaiatuba factories,” the company stated.

Over 96% of the workers who voted were in favor of approving the layoff proposal, the Metalworkers’ Union of Sorocaba and surrounding area reported. Of 4,492 employees qualified to vote Sunday, 3,709 cast ballots, according to the union.

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Toyota employees ratify temporary layoff proposal, union reports
Toyota employees ratify temporary layoff proposal, union reports

One of the agreements reached by the workers and the company was an assurance that all workers with a gross salary not exceeding 10,000 reais ($1,869.30) monthly would receive their full pay while in the layoff period, the union stated.

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