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Closure of the Araxá Mining and Chemical Complex is expected to affect direct and outsourced employees, with initial cuts already planned and a temporary agreement for bonuses and maintenance of the health plan
More than 1,200 workers are expected to be laid off with the closure of activities at the Araxá Mining and Chemical Complex, in Alto Paranaíba, announced by Mosaic Company last month. The estimate is from Sima, which represents employees in the mineral extraction, chemical, and fertilizer sectors in the region.
Mosaic Complex in Araxá begins demobilization
The Mosaic Company announced the start of the demobilization of the phosphate production unit in Araxá. The company also announced its intention to sell assets in the municipality and halt mining operations in Patrocínio.
In the announcement, the American group did not detail how many employees will be affected. The company only stated that the measures are expected to result in staff reductions.
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Union estimates more than 1,200 layoffs
The number of layoffs was reported by the Union of Workers in the Mineral Extraction, Chemical, and Fertilizer Industries of Araxá and Region, Sima.
According to the president of the entity, Vicente Magalhães, the Mosaic Fertilizers complex in Araxá has about 600 direct employees. The number of outsourced workers is also estimated at approximately 600 people.
“It’s something terrible. We didn’t expect this to happen,” said Magalhães, commenting on the impact of the decision on workers linked to the operation.
First cuts expected to affect about a hundred people
According to the president of Sima, the initial layoffs in Araxá have already begun. The first wave of cuts affected about a hundred workers.
Magalhães also said that the company informed the union, in a meeting, that the complete demobilization will occur when the stocked material is finished. The forecast presented is that this will happen in July.
Agreement provides for bonus and health plan
In the meeting with the company, an agreement valid for 60 days was reached for the workers represented by the union who are dismissed. They will receive a bonus of three salaries, in addition to the obligations of the labor settlement.
The agreement also provides for the maintenance of the health plan for six months. According to Magalhães, the initial financial impact may be reduced by the compensations, but the situation may worsen later if new job opportunities do not arise.
Contacted by Diário do Comércio, Mosaic responded, in a note, that the available information on the subject is as stated in the position already sent.
This article was prepared based on information from Diário do Comércio and the Union of Workers in the Mineral Extraction, Chemical, and Fertilizer Industries of Araxá and Region, with data, numbers, and statements preserved as per the consulted material.
