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Brazil – GM postpones layoffs decision until Nov

General Motors Co and a Brazilian union have agreed to postpone until November a politically sensitive decision to eliminate as many as 1,840 jobs at a factory near São Paulo.

The decision, following tense talks and heated reminders by Brazil’s government that current tax cuts enjoyed by the carmaker go hand in hand with a pledge to preserve jobs, gives GM an additional three months to decide about layoffs on an assembly line it says it no longer needs.

After nine hours of talks with the union on Saturday, Luiz Moan, GM’s head of institutional relations in Brazil, said the carmaker would proceed with negotiations on the workers’ labor agreement in the coming months. Union members, meanwhile, will vote on the agreement at an assembly on Tuesday.

The accord relieves mounting political pressure in recent weeks as the carmaker considered shuttering the assembly line, one of eight at the complex in São José dos Campos…

via GM postpones Brazil layoffs decision until Nov | Reuters.

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