Historic decision! Court orders Gerdau to suspend mass dismissal of more than 400 workers

The Labor Court suspended the mass dismissal of 400 employees from Gerdau in Minas Gerais, obliging the company to continue paying salaries and benefits until an agreement with the union is reached. The decision aims to protect workers and establish an important precedent for labor relations in Brazil.

The Labor Court made a historic decision to suspend the mass layoff of more than 400 Gerdau employees, at the Barão de Cocais unit, central region of Minas Gerais.

The preliminary measure determines that the company continues to pay workers' salaries and benefits until an agreement with the union is signed.

This decision, based on the opinion of the Public Ministry of Labor (MPT), aims to protect the rights of employees and guarantee union mediation.

— ARTICLE CONTINUES BELOW —

Injunction Protects Workers' Rights

The decision, handed down on Wednesday (10) and published this Thursday (11), was based on an opinion from the MPT, who also spoke out for the reinstatement of dismissed employees.

According to the Court, Gerdau must maintain all benefits, including health insurance, for employees laid off since May 27, 2024, even without providing services.

The company is prohibited from carrying out new dismissals without just cause until the union intervenes. If Gerdau fails to comply with its obligations, it will be subject to a fine of R$5 per month per irregular worker, allocated to a fund to be defined later.

Context of the Court Decision

The illegality of the dismissals was found because the Gerdau announced the shutdown of the steel plant and, shortly afterwards, began the mass layoff of more than 400 employees.

The court decision occurred in a collective civil action filed by the Union of Workers in the Metallurgical, Steel, Mechanical and Electrical and Electronic Material Industries of Barão de Cocais, which received a favorable opinion from the MPT on the requests presented.

In a note, Gerdau stated that the Federal Constitution protects economic freedom, making the union's request to prevent hibernation unfeasible.

According to the company, it is necessary to advance negotiations with the union to minimize the effects of hibernation on workers.

The company also guaranteed that the injunction does not change the state of hibernation, but ensures payment of funds until the end of negotiations. Gerdau also stated that it will follow all legal procedures and will continue to attempt dialogue with the union in various forums.

Impacts and Next Steps

The Labor Court's decision is a milestone in the protection of workers' rights, establishing that companies must negotiate with unions before carrying out mass layoffs.

This measure seeks to ensure that workers are not left helpless during restructuring processes or stoppage of business activities.

As reported by MPT, collective action is a response to need to protect employee rights in a time of economic uncertainty.

Gerdau will have to dialogue with the union to find a solution that benefits both parties, avoiding losses to workers while the company faces economic challenges.

Updates and Future Perspectives

In the coming months, the situation between Gerdau and its employees must remain under intense surveillance. Continuing payment of salaries and benefits is a palliative measure while negotiations progress.

Gerdau must demonstrate its willingness to reach a fair agreement, which can be accepted by the union and benefits workers.

The suspension of layoffs and the obligation to maintain benefits are significant steps to ensure protection of the rights of workers in a crisis scenario and can still serve as a reference for other similar situations in Brazil, establishing an important precedent for labor relations in the country.

Will Gerdau be able to reach a fair agreement with the union and avoid future mass layoffs? Leave your opinion in the comments!

Be the first to react!