SAO PAULO, Brazil, July 24 (Reuters) - U.S. auto maker General Motors has reversed its decision to cut 450 jobs at a Brazilian plant after employees threatened to go on strike to protest the layoffs, a workers union said on Thursday.
The cuts, announced on Tuesday, would have affected GM's factory in Sao Jose dos Campos in Sao Paulo state, which employs about 8,500 workers.
As part of the deal, the 450 employees will take holiday for five months during which they will receive 90 percent of their gross salary the first month and 80 percent the remaining four months, said the Sao Jose dos Campos Metalworkers Union, which led the talks with GM.
GM was not immediately available for comment.
According to the union, GM also promised to ensure job stability at the plant during the five months. In case it still needs to lay off workers at the end of the period, it will pay each employee three months of wages.
GM's Tuesday announcement came just one day after German auto maker Volkswagen AG said it planned to slash 4,000 jobs in Brazil, where auto sales have plunged due to the country's high interest rates and slow-growing economy.
Workers at the VW plant have also threatened to strike if VW does not abide by contracts that ensure jobs until 2004 and 2006 for some of its employees.