Strike Ends at VW Brazil Plant

Volkswagen do Brasil Ltda. agrees to review plans to eliminate 1,800 jobs – ending a strike at its largest plant.

Production returned to normal at the Sao Bernardo do Campo (Anchieta) plant, as representatives from management and the unions that control 12,400 workers at the facility entered a new round of negotiations, Reuters reports.

VW Brazil and its labor unions have been at odds over a plan to furlough workers over the next two years to stem losses caused by an unfavorable exchange rate for the Brazilian real.

Volkswagen had threatened to close down Achieta last week. Previously, the auto maker proposed roughly 5,770 cuts to be distributed among its five Brazilian plants employing 22,000 workers. Union members earlier rejected VW Brazil's plan to lay off 3,600 workers at Anchieta and reduce other benefits.

The strike began immediately after VW gave 1,800 workers termination notices Aug. 29.

The facility supplies two other VW Brazil factories, one in Taubate, Sao Paulo, and the other in Sao Jose dos Pinhais, Parana.