Volkswagen Halts Operations For 20 Days Due To Semiconductor Shortage In São Paulo’s ABC Region

For The Union Of Metalworkers Of ABC Paulista, Semiconductor Shortage Will Make 2.5 Thousand Volkswagen Workers Go On Vacation

Volkswagen is expected to halt production at its factory in São Bernardo do Campo for about 20 days, starting next Monday, the 9th.
The reason for the halt, according to CNN Brazil, is the global semiconductor shortage, which has also affected the IT sector. Volkswagen had already announced the stoppage due to the semiconductor shortage, and on Monday, the 2nd, the automaker suspended the second shift for the industry that assembles the sporty T-Cross model in Paraná.

While in Paraná, some employees had their work contracts suspended (known as layoff, which can last up to five months), in ABC Paulista, workers on both shifts will have collective vacations for the next three weeks.
According to the ABC Paulista metalworkers union, about 2.5 thousand Volkswagen workers will go on leave at the facility where the Polo, Virtus, Nivus, and Saveiro car models are produced.

Crisis In The Semiconductor Sector

With the pandemic, the semiconductor sector was put into an extensive supply crisis. In this context, we saw the sector advance greatly on one side and enter decline on the other. This is because, while there was an interruption in the semiconductor production chains due to the lockdowns imposed in 2020-2021, the quarantine caused the digital side to rise, as this significantly increased the demand for technological means.
It is in this vein that, if there is no kind of quarantine or lockdown in 2022, the forecast for the normalization of the semiconductor market is only around the middle of that year, although there are experts who predict this normalization will only occur in 2023. To assist the sector, Intel has already invested over 500 million reais.

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Volkswagen Forms Agreement With Workers’ Union

Currently, the Volkswagen factory in Anchieta produces about 800 Volkswagen vehicles per day. In March 2022, Volkswagen had already suspended operations at its factory located in ABC Paulista due to the semiconductor shortage.
According to the general coordinator of the union representation at Volkswagen in ABC Paulista, José Roberto Nogueira da Silva, Volkswagen has an agreement established between the union and the factory management that ensures perspective in crisis situations.

According to José Roberto, they are utilizing all the flexible tools discussed in the agreement between the union and Volkswagen. This agreement encompasses favorable and unfavorable moments to navigate crises, as it provides predictability for both Volkswagen and the workers and also ensures some stability to face crises like this.
He further emphasizes that the semiconductor shortage situation is similar to what is happening in other factories in the sector and assures that there is a production demand, but due to the semiconductor shortage, fulfillment becomes unfeasible. He concludes by saying that everyone is hopeful for the resumption of semiconductor production as soon as possible.

Volkswagen In ABC Paulista Is Not The Only One Affected By The Crisis

The Mercedes-Benz factory, in March and April, also placed workers from the factory in ABC Paulista, in São Bernardo do Campo, on collective vacations due to the semiconductor shortage. Employees who received emergency vacations were absent from the factory between March 14 and 25, and from April 18 to May 3. The union reported that, in March, 1,200 workers were affected by the measure, and in April, 5,000.