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GM proposes suspension of contracts and reduction of salary of 90% of employees in …

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GM proposes suspension of contracts and reduction of salary of 90% of employees in ...

General Motors (GM), owner of Chevrolet, proposed suspending employment contracts with reduced salaries for 90% of employees at the São José dos Campos (SP) plant. The information is from the Metalworkers Union that closed this Saturday (4) a round of four negotiations with the automaker.

The proposals were made based on Provisional Measure (MP) 936, which authorizes the suspension of employment contracts in companies, during the coronavirus pandemic. The company confirms the negotiation (read more below).

  • Economic measures in the coronavirus crisis: see questions and answers

GM has about 3,800 employees in São José and according to the proposal, only about 100 employees who continue to work at the plant would receive the full salary. The rest would have their wages reduced by between 5% and 25%, according to salary ranges (see below):

  • Whoever earns up to R $ 2,090.00 – will receive 95% of salary
  • From R $ 2,090.01 to R $ 5,000 – 90%
  • From R $ 5,000.01 to R $ 10,000 – 85%
  • From R $ 10,000.01 – R $ 20,000 – 80%
  • Above R $ 20,000 – 75%

The union said that the final proposal will be voted on the internet by metalworkers in the coming days. For now, all workers are on collective vacation, which ends on April 12.

"We left on the negotiating table the proposal for paid leave for two months, extendable for another two, and stability for 12 months. After the coronavirus period, we already see a recession coming. The most important thing for workers is stability. The MP of the government does not give the due protection to the worker ", said the vice president of the union of the category in São José dos Campos, Renato Almeida.

The union also informed that it defended the lay-off without a salary reduction, but that the company did not accept it.

In a note, GM said that 'it has been taking measures aimed at protecting the health of its employees in the midst of the Covid-19 pandemic, while seeking alternatives to guarantee the future of the business and that, in this sense, measures have been implemented as a bank hours, collective vacations, cost reduction plans and even postponing investments'.

However, the automaker reported that 'in this moment of unprecedented crisis that Brazil and the world are facing and, in an effort to maintain jobs, the company is discussing with other unions other measures, which include lay-offs and reduced working hours, both with impact of wage reduction '.

GM also said that the package was approved by the vast majority of employees at the factories in São Caetano do Sul, Gravataí, Joinville and Mogi das Cruzes, and at the Indaiatuba Proving Ground at a digital assembly promoted by the metalworkers' unions and that the proposal includes :

  • A program to reduce hours and wages for employees who continue to work in the home office, including the President and the entire leadership in different percentages;
  • For employees up to management level: one hour reduction in the daily work with 12.5% ​​reduction in salary;
  • For executives at board level and above, the impact will be a 25% reduction in salary.
  • A lay-off program that impacts most hourly and monthly employees from all areas and levels in Brazil with a salary reduction between 5% and 25% of the salary according to the salary range.

GM informed that these measures will have an initial duration of two months with the possibility of extension, and may be canceled if the market demand returns to a normal situation and that the automaker is evaluating with the unions the opportunities established by MP 936, with the objective of adapting the approved measures to the new rules presented by the government.

In the note, GM also stressed that these measures are emergency and temporary, with the objective of preserving jobs, contributing to the efforts of the federal government and state and municipal governments. In addition, the company said it is following the evolution of the scenario and that it will be ready to resume activities as soon as possible.


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