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Workers at Brazil Volkswagen plant may join strike

SAO PAULO, Brazil, April 24 (Reuters) - Metalworkers at a Volkswagen AG plant in southern Brazil on Thursday threatened to join a strike already halting production at three other major auto factories in the South American country.

A union spokeswoman said some 2,600 employees at the German auto giant's Sao Jose dos Pinhais plant in Parana state were demanding a one-time bonus of 500 reais ($166) to compensate for a sharp surge in inflation late last year that cut workers' buying power.

Company management agreed to the demand but offered to make payment in five monthly installments. The union said workers voted to reject the offer on Thursday, saying they would only accept payment in one lump sum or in two monthly installments totaling 550 reais.

A spokeswoman at Volkswagen said the company would decide on Friday if it accepts the counteroffer, after which workers would be required by law to give 48 hours notice before going on strike.

If the Volkswagen employees walk out, they would join metalworkers at three other major auto plants in Brazil who are already striking for similar reasons.

Some 10,000 workers at a General Motors Corp. factory and another 2,500 at a Renault auto plant here have been striking since Tuesday, bringing production to a halt at both sites.

On Wednesday, 1,500 metalworkers at a Volvo truck and bus factory in Parana walked off the job, joining their colleagues at Renault in demanding a one-time bonus equal to 14.61 percent of their wages from September to February, union officials said.

At GM, workers are demanding a 10.39 percent bonus and that the U.S. automaker cut their work week to 36 hours from 40 hours. They also want management to create an "inflation clause" that guarantees a pay raise every time consumer prices jump more than 3 percent.

The strike is the second major walkout by factory workers under the new center-left government of President Luiz Inacio Lula da Silva, himself a former metalworker and union boss. Lula, who took office on Jan. 1, has distanced himself from the disputes, urging the parties to negotiate a quick solution.

In late March, tens of thousands of metalworkers at more than 80 auto parts plants in the industrial hub of Sao Paulo staged a three-day walkout but returned to work after winning pay raises.