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Regional Labor Court upholds decision against dismissals by General Motors in São José dos Campos
The Regional Labor Court maintained its position in a recent determination against General Motors (GM), denying an appeal by the company and reaffirming the invalidation of 839 layoffs carried out at the São José dos Campos plant, São Paulo. The refusal of the appeal, decided by judge João Alberto Alves Machado, forces the automaker to reinstate the dismissed employees.
The previous week, an injunction issued by the same judge had instructed GM to reinstate employees and cease further dismissals, in addition to maintaining the rights and working conditions prior to the dismissals. If GM fails to reinstate employees, the company is subject to a daily fine established by the court.
In response to the court decision, an assembly with employees resulted in the continuation of a strike, persisting until the vehicle manufacturer's complete execution of the decision.
Context of the Layoffs at GM
- Initial Announcement: On October 21, GM announced layoffs at three of its units in São Paulo, including São José dos Campos, São Caetano do Sul and Mogi das Cruzes.
- Communication Method: Employees were notified via email and telegram, and the exact number of those affected was not initially disclosed by the company.
- Motivation: GM justified the layoffs by the reduction in sales and exports, citing the need to readjust its workforce.
The layoffs took workers and unions by surprise, who pointed out the lack of prior negotiation over the layoffs. In São José dos Campos, unionists demanded the cancellation of the layoffs, relying on a previously signed stability agreement.
Workers' Response
Workers at all three factories went on strike in protest against the measures, with the intention of only returning to work after the dismissals were cancelled. During this period, there were demonstrations and attempts to reach an agreement, but conversations between GM and the unions did not result in consensus, even with the intermediation of the Ministry of Labor.
Further Actions
GM remained in negotiations with worker representatives, and despite attempts at conciliation, such as the discussion of a Voluntary Dismissal Program (PDV), there was no substantial progress. As events unfold, expectations turn to upcoming meetings and possible resolutions.
This case highlights the complexity of industrial relations and the importance of complying with labor laws, as well as the significant role of the Labor Court in mediating disputes between corporations and employees. Stakeholders continue to search for a solution that balances workers' rights with the company's operational needs.
After all, does a businessman who works in Brazil have the right to fire whoever he wants, as long as labor rights are paid?
Yes, in Brazil, entrepreneurs have the right to fire employees, as long as the rules established in the Consolidation of Labor Laws (CLT) and other relevant legislation are followed. However, there are some specific restrictions and conditions that must be observed:
- Early warning: The employer must notify the employee of the dismissal in advance, which varies depending on the length of service, or pay the indemnified notice period.
- Payment of Severance Pay: All severance pay due must be paid, such as salary balance, accrued and proportional vacations with an additional 1/3, proportional 13th salary, and the FGTS with a fine of 40% on the amount deposited during the work period.
- Respect for Provisional Stabilities: There are situations in which the employee cannot be fired, such as in cases of temporary stability due to pregnancy, work accident, or as a member of CIPA (Internal Accident Prevention Committee).
- Motivation: Although the CLT allows dismissal without just cause, that is, without the need to indicate a specific reason, discriminatory dismissals are prohibited and can lead to the employee's reinstatement.
- Collective Bargaining: In some situations, especially in cases of mass layoffs, it may be necessary to negotiate with representative unions to define conditions that can mitigate the social impact of the layoffs.
- Just Cause: When an employee is dismissed for just cause, the employer must have solid grounds and proof that the employee committed any of the acts provided for in the CLT that authorize this type of dismissal.
- Compliance with Legal Procedures: In some specific categories and situations, there are additional legal procedures that need to be followed.
The Labor Court is always open to receive labor complaints if the employee believes that their rights were not respected upon dismissal. Court decisions can influence the process, as in the case of decisions that suspend mass layoffs or in special situations.
