Toyota Layoffs in Brazil After Storm
Toyota Workers Approve Layoffs After Storm Damage Halts Production in Brazil
São Paulo – Toyota workers in Brazil have approved a temporary layoff plan after a powerful storm severely damaged the company’s engine factory in Porto Feliz earlier this month. The facility, which supplies engines for several models, was hit by heavy rain and winds on September 22, forcing Toyota to suspend operations there and at its Sorocaba plant, where vehicles such as the Yaris, Corolla, and Corolla Cross are built.
The Metalworkers’ Union of Sorocaba said the measure is meant to safeguard jobs and workers’ income during the crisis. Under the plan, employees will begin a 20-day emergency vacation starting Wednesday, followed by layoffs on October 21. The arrangement can be extended monthly for up to 150 days if needed.
Toyota said on Sunday that it is still assessing the extent of the damage at Porto Feliz and expects it will take months before the plant can return to normal operations. In the meantime, the company is seeking alternative engine supplies from Toyota facilities in other countries to restart vehicle production at its Sorocaba and Indaiatuba factories.
The union reported that 96% of workers supported the plan in a vote on Sunday. Out of 4,492 eligible employees, 3,709 cast ballots. One of the key agreements ensures that all workers earning up to 10,000 reais ($1,869) per month will continue to receive their full salary during the layoff period.
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