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The Employees Of The Fiat Factory In Minas Gerais Will Stay Home For Three Months Starting On October 4, Next Monday
After months of continuing production despite the semiconductor shortage, Fiat shows that it is not immune to the lack of the component. The company announced that it will begin the layoff process for about 1,800 employees at the Betim factory in Minas Gerais starting on October 4, who will stay home for three months. The brand states that the suspension will occur during the night shift of a single assembly line and the affected cars have not been revealed. Read this news article: New Collective Vacation Announced By Renault At Its Factory In São José Dos Pinhais, In The State Of Paraná
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Production Cut At Fiat Factory
The industrial complex in Betim, Minas Gerais, is responsible for assembling Argo, Doblò, Grand Siena, Mobi, Uno, Strada, and more recently, Pulse. Additionally, the location still has the Firefly engine factory, in both aspirated and turbo versions. Initial rumors suggested that the layoff could affect up to 6,500 employees and could last up to four months. The agreement between the manufacturer and the workers was finalized yesterday, and the brand is already announcing the measure for the beginning of October, reducing the production pace until the end of the year.
This decision comes at a crucial moment for Fiat, as the Pulse is about to hit stores. The company has already started production of the vehicle and confirmed the final presentation for October 19, when a pre-sale is expected to begin before reaching dealerships in November. By reducing the number of shifts, the brand can reserve part of the raw material for use in assembling the compact SUV and meet the initial demand.
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Agreement With Workers At The Unit
In its statement, Fiat blames the semiconductor shortage as the main reason for the factory’s production halt but mentions the lack of other undisclosed supplies. Stellantis has made some temporary shutdowns throughout the year, stopping one shift of the factory at two points, both with a 10-day halt affecting 1,900 employees.
In counterbalance to this decision, Fiat intends to maintain the full salaries of employees earning up to R$ 3,500. For those earning more, there will be proportional cuts that increase as salaries rise. Medical agreements will also be fully maintained, and there will be a cost assistance of R$ 70 for those who work from home and need to use the internet.
Check Out This News: Volkswagen Places 800 Employees On Collective Vacation Due To Lack Of Production Materials At Factory In The Interior Of São Paulo
Volkswagen has initiated a new period of collective vacation for 800 employees at the factory in Taubaté, in the interior of São Paulo. According to the Metalworkers’ Union, the halt is due to a lack of parts and will last for 10 days. This is the sixth time this year that the factory producing the Gol and Voyage models has announced stoppages.
The reason given by the company is the lack of parts, especially semiconductors, which have been in short supply since the beginning of the pandemic, hindering vehicle production. The union reported that the measure will apply to a group of 800 employees, equivalent to one production shift. The expected date for the workers to return to the Taubaté factory, in the interior of São Paulo, is October 7.
Currently, the Taubaté factory produces the Gol and Voyage cars but is in the process of installing an MQB platform, which will allow the factory to produce other vehicle models. According to the union, this is the sixth time this year that Volkswagen has placed employees on collective vacation. The most recent period was between August and September when 800 workers were affected by the measure, also due to a lack of parts.
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