GM Factory in São José dos Campos Suspends One Production Shift, Affecting 700 Workers

The Measure By GM To Suspend A Shift At The Factory In São Paulo Was Adopted Due To The Lack Of Semiconductors That Affects The Automotive Industry

Yesterday, Monday (11/08), General Motors (GM) began the suspension of one production shift for the S10 and initiated a new layoff – temporary contract suspension – at the São José dos Campos factory, located in the state of São Paulo. This measure to suspend a shift at the unit was adopted due to the lack of semiconductors, which affects the automotive industry and impacts around 700 workers. The layoff agreement was negotiated between the automaker GM and the Metalworkers’ Union of São José dos Campos in the last week of October. Read This News: GM Metalworkers Reject Counterproposal and Strike Continues at São Caetano Factory in São Paulo

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The Suspension of a Shift at GM’s Factory in the State of São Paulo

The regime of temporary contract suspension for workers at the GM factory may last five months, with the possibility of extension for another five months. During this period, 100% of the net salary and the payment of the FGTS will be guaranteed. The layoff regime stipulates that a portion of salaries will be paid with resources from the FAT (Worker Support Fund). In São José dos Campos, the production of the S10 pickup has 2,200 workers. In total, the factory has about 3,800 employees and also produces the Trailblazer model.

The factory in São José dos Campos is the only General Motors facility in the country where all workers will have job stability guaranteed during the layoff period. This right was won by demands from the metalworkers themselves, who had previously approved this condition for the suspension of contracts in an assembly. Also, at the workers’ demand, the regularization of 300 temporary workers was secured. Without the agreement, they would have had their contracts terminated in the coming months.

The Statement Released by GM About the Suspension of Production in One Shift at the Factory

“The automotive industry’s supply chain has been globally impacted by production stoppages during the pandemic and by the market recovery being faster than expected. This will temporarily affect our production schedule at the São José dos Campos factory, which will operate on one shift starting November 8. In order to protect jobs and the sustainability of the business, GM and the union agreed to adopt a layoff regime for the affected employees, which was approved in the assembly.”

CLICKHERE TO READ THE NOTE PUBLISHED BY THE METALWORKERS’ UNION OF SÃO JOSÉ ABOUT THE SUSPENSION OF A SHIFT AT GM’S FACTORY. 

Also Check Out: General Motors Factory in São Paulo Will Undergo Modernization. GM Took Advantage of the Semiconductor Shortage to Carry Out the Work

General Motors (GM) is trying to extract some productivity from the shutdowns of its lines in Brazil caused by the widespread lack of electronic components. Since the global semiconductor shortage would inevitably lead to production interruptions in São Caetano do Sul, in the state of São Paulo, the company decided to accelerate the modernization works at the oldest automotive factory in Brazil, which is being prepared to produce the new boosted generation of the compact Montana pickup.

GM took advantage of the semiconductor shortage to carry out work at the factory that, in any case, would require production stops. There are 4,000 m² of new facilities that include 93 welding robots imported from Japan. They will join the other 658 in the body shop already in operation, several of which were installed last year for the production of the SUV Tracker.