Ford Leaves Country and Will Have to Pay at Least R$ 130,000 to Workers Fired for Suspending Vehicle Production and Closing Its Factory in SP

After Ending Its Production and Exiting Brazil, Ford Will Have to Compensate Workers Dismissed in SP. The Factory in Bahia is Still in Negotiations

Last Tuesday (04/06), Ford closed an agreement with the union regarding the compensation to be paid to workers dismissed due to the closure of its engine and transmission plant in Taubaté, in the interior of São Paulo. The company announced its exit from the country in January this year and halted all vehicle manufacturing in Brazil. After Automakers Halted Vehicle Manufacturing in 29 Factories in Brazil, Volkswagen and Toyota Resume Production in the Country

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In addition to the legal termination payments, multinational Ford will pay between one and two salaries for each year worked at the factory – depending on the employee’s category (hourly or salaried) – with a minimum compensation of R$ 130,000 guaranteed per employee. The more favorable condition for the worker will apply.

Additionally, dismissed employees will be included in a training program to re-enter the job market.

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Negotiation Between the Automaker and SP Union Had 25 Rounds

The result of 25 rounds of negotiations between Ford and the local union, the agreement also provides for investments from the automaker in a training program for dismissed employees aimed at reintegration into the job market. The investment will be R$ 700 per effectively dismissed hourly worker.

According to information from the local union, the vote held at the factory narrowly approved the agreement: 55.3% of employees were in favor. Approximately 800 people work at the Ford factory in Taubaté.

According to the closure schedule for the unit, the vehicle factory will continue producing parts for the aftermarket until April 16. By the end of July, all equipment will be shut down.

In a Move Contradicting Ford and Chevrolet, the Multinational Auto Parts Manufacturer Bosch Decided to Bring Its Production from the USA to Brazil

The German multinational auto parts manufacturer Bosch went against the trend of automakers Ford, Chevrolet, Honda, Audi (Volkswagen), Scania, Volvo, Mercedes-Benz, Nissan, and Renault, who decided to pull out or reduce production in Brazil, and brought to Brazil the production of injectors and injector nozzles for trucks that were produced in its factories in the United States, thus expanding the diesel injection systems division at its Curitiba plant.

Additionally, the intention of the German multinational is to supply not only the domestic market but also export a large amount – which can reach up to half of production.